Nabard likely to sanction Rs 40 cr to MFIs

The National Bank for Agriculture and Rural Development (Nabard) plans to sanction Rs 40 crore to various micro finance institutions (MFIs) in the state during the current fiscal.

So far, Nabard has sanctioned Rs 10.5 crore under various schemes and revolving fund assistance to several MFIs. The Nabard is in the process of identifying the MFIs and self help groups (SHGs) to sanction the balance amount.

Nabard experimenting various pilot projects with a view to replicating them in a sustainable manner. A new product designed for MFIs - Scheme for capital / Equity Support - was introduced in February 2007. Since the commencement of the scheme, Rs 6.5 crore has been sanctioned to 7 MFIs," said Deepak B Gore, chief general manager, NABARD, Karnataka Regional Office.

He said Nabard has been consistently formulating policies for MFIs and SHGs to explore alternative credit delivery models.