Govt increases loss coverage for micro loan defaults to 75% from 50% earlier

“It will incentivise lending institutions to give credit as their losses from defaults on loans will be protected to the extent of 75%,” said Anil Gupta, head of financial sector ratings at ICRA. The CGFMU scheme, announced in April 2016, covers micro loans up to Rs 10 lakh extended under the Pradhan Mantri Mudra Yojana.

from Banking/Finance-Industry-Economic Times https://ift.tt/3bugaeN