The Rs 30,000 crore Special Liquidity Scheme for non-banking, housing finance companies and Monetary Financial Institutions (MFI) as part of the Atmanirbhar Bharat package has progressed well, the Ministry of Finance said on Sunday.
The Finance Ministry said that it has approved 37 proposals involving Rs 10,590 crores as on September 11 and six applications seeking financing of Rs 783.5 crore are under process.
“Rs 30,000 crore Special Liquidity Scheme for Non-Banking Financial Company (NBFCs)/ Housing Finance Companies (HFCs)/ Monetary Financial Institutions (MFIs) has progressed well. As on September 11, 37 proposals involving an amount of Rs 10,590 crores have been approved. Six applications seeking financing of Rs 783.5 crore are under process,” the Ministry said in a press release.
“As reported by public sector banks and top 23 private sector banks, additional credit amounting to Rs 1,63,226.49 crores (has been) sanctioned to 42,01,576 borrowers as on September 10,” the Ministry added.
Regarding Additional Emergency Working Capital Funding for farmers through NABARD, the Finance Ministry said that Rs 25,000 crore has been disbursed as on August 28.
The balance amount of Rs 5,000 crore has been allocated to NABARD under the Special Liquidity Facility (SLF); the Reserve Bank of India has allocated this sum for smaller NBFCs and NBFC-MFIs.
NABARD is finalising operational guidelines to roll it out soon, the Ministry said.
NABARD has also launched a Structured Finance & Partial Guarantee scheme in collaboration with two agencies and banks to help unrated NBFCs/MFIs to get credit from lenders, the release stated.
This mechanism worked out with the agencies and banks will enhance eligibility of credit by 5-6 times to small MFIs who do not have any rating, in the hope of reaching out to the people in remote and unreached areas, the Ministry added.
Once the earmarked amount for this scheme is deployed, credit availment by those small NBFCs/MFIs to an extent of Rs 2500 to Rs 3000 crore is envisaged, the release added.