Page 21 - MUDRA ANUBHAV

banking and financial services are a necessity.
Banking and financial services are very important
pillars for any economy. The structure of PMMY

aims to ensure that while the beneficiary gets
the necessary support for starting own venture,
the financing institutions do not have reasons to
hesitate in providing such support. MUDRA also

supports financial institutions by providing credit
guarantee through National Credit Guarantee
Trustee Company Limited (NCGTC). A fund has
been created in the name of Credit Guarantee Fund

for Micro Units (CGFMU). All eligible micro loans
are covered and guaranteed by above scheme. The
NCGTC is promoted and supported by Government
of India. While MUDRA aims to provide finance

support to the needy ventures, the same should be
available at affordable prices. With high risks, due
to no collaterals policy, there is a chance the funds
may be available but at a higher cost, hence the

refinancing and Credit guarantee helps availability
of funds at affordable prices.

In order to make loans affordable for all and
specially to alleviate the challenges imposed due

to the pandemic, an Interest Subvention Scheme
for Shishu Loans has been launched in 2020. It
was realized that the small businesses faced many
challenges due to Covid 19 Pandemic and ensuing

lockdowns and hence face a risk of closing down.
This will not only impact these businesses but also

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