Credit Guarantee Fund Scheme

The Credit Guarantee Fund Scheme is a government initiative designed to help small businesses and entrepreneurs secure loans. It provides financial institutions with a guarantee that if the borrower defaults, the government will cover a portion of the loss. This reduces the risk for lenders, encouraging them to provide loans to businesses that might otherwise struggle to get funding. By enhancing access to credit, the scheme aims to promote entrepreneurship, stimulate economic growth, and create jobs in the economy.