Banks Press for Extension of Microloan Guarantee Window as Risk Appetite Tightens
Indian lenders that leaned heavily on the government’s microloan guarantee scheme are seeking an extension of the facility, according to people familiar with the matter, as they prepare for continued stress in small-ticket lending. IDFC First Bank and several small finance banks, including AU Small Finance Bank, Jana Small Finance Bank and Suryoday Small Finance Bank, have already set aside the guarantee fee for the current fiscal year, anticipating that the window may reopen soon.
