The Government/RBI has launched Credit Guarantee Fund Scheme for Micro and Small Enterprises to provide guarantee cover for collateral free credit facilities extended to micro and small enterprises (MSEs) upto Rs. 1 Crore. RBI has issued guidelines in mandatorily requiring banks to dispense with collateral requirement for loans upto Rs.10.00 lakh to MSEs.
The Micro Units Development & Refinance Agency (MUDRA) Ltd. which would be responsible for refinancing all Microfinance Institutions (MFIs), which are in the business of lending to micro / small business entities engaged in manufacturing, trading and services activities upto Rs.10.00 lakh.
IndianBureaucracy.com hopes that these finances reach the folks who have taken the jump of going solo and provide employment across the country and not just some urban pockets.