Rs 71,312 crore MUDRA loans disbursed

By | January 7, 2016
MUDRA (SIDBI) Bank to undertake refinance operations and provide support services with focus on portal management and also data analysis; MFIs can now become Member Lending Institutions (MLIs) with MUDRA (SIDBI) Bank for refinance and with NCGTC for Credit Guarantee.

The Union Cabinet had yesterday i.e. 6th January, 2016 approved creation of a Credit Guarantee Fund (CGF) for Micro Units Development Refinance Agency (MUDRA) loans and for converting MUDRA Ltd. into MUDRA Small Industries Development Bank of India (SIDBI) Bank as a wholly owned subsidiary of SIDBI.

Now the MUDRA (SIDBI) Bank will undertake refinance operations and provide support services with focus on portal management and also data analysis etc. The MUDRA (SIDBI) Bank can take -up any other role as may be assigned to it by Government.

MFIs can now become Member Lending Institutions (MLIs) with MUDRA (SIDBI) Bank for refinance and with NCGTC for credit guarantee. This membership is predicated on the fulfilment of certain criteria such as size, experience, an assessment of internal systems, processes and procedures, CRAR and other norms, capacity assessment rating, etc.

On an ongoing basis, the cost of guarantee is linked to rating and recovery performance, to incentivize all MFIs, who join up as MLIs to continue good performance.

MUDRA loans amounting to Rs 71,312 crore have been disbursed to 1.73 crore borrowers as on 1st January, 2016.

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