Liquidity worth Rs 45,000 Cr for NBFCs under PCGS 2.0: FM
GUWAHATI: Finance Minister Nirmala Sitharaman today, announced a revised Partial Credit Guarantee Scheme 2.0 (PCGS) worth Rs. 45,000 Crore for Non Banking Financial Corporations (NBFCs).
NBFCs, Housing Finance Companies (HFCs) and Micro Finance Institutions (MFIs) with low credit ratings require liquidity to do fresh lending to Micro Small and Medium Enterprises (MSMEs) and individuals.
Existing Partial Credit Guarantee Scheme (PCGS) will also be extended to cover borrowings such as primary issuance of Bonds/ Commercial Papers (CPs) on the liability side of balance sheets of such entities. As per the refreshed scheme, first 20% of loss will be borne by the Guarantor, that is the Government of India.
This scheme will result in massive liquidity of Rs 45,000 crores.