Suryoday Small Finance Bank

Banks Press for Extension of Microloan Guarantee Scheme

Indian banks that relied on the government’s microloan guarantee framework are seeking an extension of the scheme, as lenders continue to use it to reduce credit risk in the small-ticket lending segment. IDFC First Bank and 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, expecting the window to reopen soon, people aware of the matter said.