New Delhi, Jan.6 (ANI): The Union Cabinet has given its approval for the creation of a Credit Guarantee Fund for Micro Units Development Refinance Agency (MUDRA) loans.
Approval has also been given to convert MUDRA Ltd. into MUDRA Small Industries Development Bank of India (SIDBI) Bank. The bank will be a wholly owned subsidiary of SIDBI.
The Fund is expected to guarantee loans worth more than Rs.1 lakh crore to micro and small units in the first instance.
The MUDRA Bank will undertake refinance operations and provide support services with focus on portal management and data analysis apart from any other activity entrusted and advised by government. (ANI)