The microfinance sector has urged Finance Minister Nirmala Sitharaman to increase the limit of credit guarantee scheme in the budget for 2022-23.
The microfinance sector is facing a few challenges in terms of higher credit costs and access to low-cost long term funds, according to self regulatory body (SRO) of MFIs.
Microfinance sector also urged the finance minister to extend the quantum of funds under the credit guarantee scheme to the MFIs.
P Satish, executive director of Sa-Dhan, an SRO, stated that the microfinance sector plays an important role in steering growth and consumption which are crucial at this juncture.
(With inputs from PTI)
