IIFCL Will Be Government Aide For Credit Enhancement Guarantee Funds
Post on 20,August 2017   5:00 AM
By - PolyEyes Staff
views 170
Bookmark and Share

Government has chosen India Infrastructure Finance Co. Ltd (IIFCL) as the lead promoter of a credit enhancement guarantee fund, announced in the 2016-17 Union budget

What is Credit Enhancement Guarantee Fund:  The union ministry for social justice and Empowerment on May 6, 2015 launched the Credit Enhancement Guarantee Scheme for Scheduled Castes. Government has picked India Infrastructure Finance Co. Ltd (IIFCL) as the main marketer of a credit enhancement guarantee fund, announced in the 2016-17 budget. 

Capital of Rs. 1,500 Crores & will be able to provide assurance for up to Rs. 40,000 Crores worth of infrastructure projects. 

It offers a supplementary source of assurance that the borrower will repay the loan and help in borrowers raise loans at reduced interest rates. 

Need of the proposal: India is in the need of about $1 trillion investment in the next 10 years for infrastructure, to have a sustainable development and growth.

Significance of the proposal

  • It would strengthen in by enhancing the value of bond market in India.
  • It will attract long-term investments especially related to global insurance, pension and sovereign wealth funds.
  • It will help enhance the credit rating of bonds issued by infrastructure firms.
  • Credit enhancement measures can help reduce interest rate costs by almost two per cent.

Concluding Remark:Though it is a scheme benefitting a large section of deprived section of society as it will be providing scheme for young and start-up entrepreneurs belonging to Scheduled Castes to avail financial assistance. This allocation was made under Social Sector Initiatives to promote entrepreneurship among SC’s. Nevertheless it is a long term initiative and such large infrastructure projects are bound by longer developmental phase and slower growths, consecutively returns are slow relatively. With India being the fastest growing economy in the world, it would need such funding initiatives to sustain this growth. Credit guarantee fund is a welcome step. It would also depend on the diplomatic efforts by India to attract sovereign wealth and pension funds of different countries.

 


Back
Comments ( 0 )
Add a comment
Your name: *
E-mail:
The content of this field is kept private and will not be shown publicly.
Title:


Related Articles

Prelims Online Test Series
UPSC 2018 Prelims Test Series Registration Link

UPSC REGISTRATION
JPSC 2017-18 PRELIMS Test Series

REGISTRATION
Most Recent Comments

Question bank required

by Binit

This job will be great aportunity for graduate lable

by Rohit Kumar

No one will reply for   new cutoff.  All predictors are in dialema abt the decision of bpsc. 

by Pankaj Tiwari

Sir boys cdpo apply kar sakta hai

by Amarjit Kumar

I have seen your last bpsc pre prediction which was 100%accurate,so i want to know that what would be the cut off this time when bpsc is going to select only 6420 candidates for mains?

by Mr. SANKI MAN

Plz tell me which book is good for preparation and date

by Priyanka

Hello. 

Whdo  Will I do my intermediate level exam bank chalan receipt will stolen. I am so confused after prelims examination what is the role of this chaln in mains exam

by Pankaj Prakash

My son is -21/07/1987 my exam center is in ranchi.l had lost my admit card.can u please provide me my roll no.so that l can check the result.

by AMRENDRA Kumar

I want to know that when the bpscexam will held likewise 60 62 exam

 

by Abhi

I think cdpo requirenment 2017 will be uploades 

Notification this mont.

 

by ASHISH KUMAR
Get RSS Feeds
  • All Stories
  • Recently Published Stories
  • Most Viewed Stories
  • Just In Photos
  • Most Viewed Photos