Micro Finance Programme


The Union Government has launched a scheme of micro finance and tied up with the existing programme of SIDBI by way of contributing towards security deposits required from the MFIs/NGOs to get loan from SIDBI. The scheme is being operated in the under-served States and under-served pockets/districts of other States.

Government of India provide funds for micro finance programme to SIDBI, which is called ‘Portfolio Risk Fund’ (PRF). At present SIDBI takes fixed deposit equal to 10% of loan amount. The share of MFIs/NGOs is 2.5% of loan amount (i.e., 25% of security deposit) and balance 7.5% (i.e., 75% of security deposit) is adjusted from funds provided by the Government of India.

Submit the proposal in the prescribed form to SIDBI.