Hi, The details on NCGTC (Background) for CGFMU states the following which is different than what you have assumed.
“Guarantees for loans up to the specified limit (currently Rs.10 Lakh) sanctioned by Banks / NBFCs / MFIs / other financial intermediaries engaged in providing credit facilities to eligible micro units. Further, Overdraft loan amount of Rs.10,000 sanctioned under PMJDY accounts shall also be eligible to be covered under Credit guarantee Fund.”
Further, the investor presentation slides, slide 4, mentions that the 50% of their MFI loan book is insured and not that CGFMU insures 75% of the loan book. They have just said that 75% of their loan book will be insured especially because loans issued after Jan 24 will be insured by CGFMU upto the limit mentioned above.
Or am I misconstruing your comment?
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