Mint Explainer | Will the credit guarantee scheme 2.0 fix microfinance’s funding freeze?
“What the sector needed most at this stage was not just capital, but the confidence to restart lending. Once that flow begins, it creates a cycle—disbursements pick up, repayments follow, and lenders gradually become more comfortable in extending credit again, “said Jiji Mammen, executive director and CEO of Sa-Dhan, an association of microfinance institutions.
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