Context:

An Rs.750 crore Credit Guarantee Fund would be set up and managed by NABARD.

About:

• Credit guarantees would be provided to those sanctioned projects which are covered under MSME-defined ceilings.
• Guarantee Coverage would be up to 25% of the Credit facility of the borrower.

Benefits of the Fund

• Focused investment: Investment incentivization in AHIDF would leverage 7 times the private investment.
• Higher productivity in farming: It would also motivate farmers to invest more on inputs thereby driving higher productivity leading to an increase in farmers’ income.
• Livelihood creation: The measures approved through AHIDF would also help in direct and indirect livelihood creation for 35 lakh.