# Only 17% of Rs 20,000-crore MFI credit guarantee disbursed 2026-08-10T21:51:23+00:00 | Governance | Indian Opinion Desk Corroboration: 1 independent outlet Banks have disbursed only Rs 3,300 crore of the Rs 20,000-crore credit guarantee scheme for microfinance companies, just 17% of the target. The scheme's deadline ends this month after a previous extension from June 30 to August 31. Lending has been slow because banks are cautious with smaller NBFC-MFIs, while larger MFIs are reluctant to borrow under the programme as they can get funding outside on better terms, Sa-Dhan executive director Jiji Mammen said. Of the amount disbursed, Rs 1,000 crore went to small and medium MFIs and the rest to large ones. The government set aside Rs 3,000 crore for small and medium MFIs and Rs 17,000 crore for large ones with assets over Rs 2,000 crore. About 60 micro lenders have received loans under the guarantee cover, 44 of them small and medium-sized entities. The National Credit Guarantee Trustee Company offers a partial guarantee of 70-80% of defaulted amounts for three years. ## Coverage - economictimes.indiatimes.com Tags: bank lending, credit guarantee scheme, government scheme, microfinance, NBFC-MFIs Canonical: https://indianopinion.org/only-17-of-rs-20000-crore-mfi-credit-guarantee-disbursed/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/only-17-of-rs-20000-crore-mfi-credit-guarantee-disbursed/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.