The emergency credit line guarantee scheme has been announced to give an incentive to lenders to offer additional funding facility to MSME borrowers by providing them 100% guarantee for any losses suffered by the lenders due to any default Non banking financial companies (NBFCs) have urged finance minister Nirmala Sitharaman to widen the scope of the Emergency Credit Line Guarantee Scheme that was recently announced as a part of the key proposals in the government’s ₹20 trillion economic package for small businesses hit by the outbreak of covid-19.
In a meeting with Sitharaman on Friday, NBFC representative body of NBFCs Finance Industry Development Council (FIDC) requested the government to cover unsecured loans under the scheme, mainly