Question
The guarantee for Mudra loans is provided by
______.Solution
The guarantee for Mudra loans is provided by the National Credit Guarantee Trustee Company Ltd (NCGTC), which was established in March 2014 by the Department of Financial Services, Ministry of Finance. NCGTC acts as a common trustee company to manage and operate various credit guarantee trust funds. Some of the schemes managed under NCGTC include: • Credit Guarantee Fund for Micro Units (Mudra loans), • Credit Guarantee Scheme for Start-ups (CGSS), • Credit Guarantee Fund for Skill Development, • Loan Guarantee Scheme for COVID-affected sectors, and • The Emergency Credit Line Guarantee Scheme (ECLGS). By covering Mudra loans under its framework, NCGTC helps promote financial inclusion and ensures wider credit access for small borrowers.
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