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<h1>Credit Guarantee Fund expansion enables refinance through member lending institutions, linking guarantee cost to rating and recovery performance.</h1> Creation of a Credit Guarantee Fund for MUDRA loans and conversion of MUDRA Ltd. into a SIDBI subsidiary establishes MUDRA (SIDBI) Bank to undertake refinance operations and support services focused on portal management and data analysis. MFIs may become Member Lending Institutions for refinance and credit guarantee access, subject to eligibility criteria and capacity assessment, with guarantee costs linked to rating and recovery performance.
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