Credit guarantee for micro loans: first-loss portfolio cover with partial pro rata payout after lender's initial loss, subject to conditions. The Scheme creates a Fund to guarantee collateral-free micro loans under PMMY through crystallised portfolios managed by NCGTC; lending institutions must pool eligible loans, submit auditor/management certifications and pay periodic guarantee fees. The Fund provides a first-loss portfolio guarantee where the lending institution bears initial losses and the Fund meets a pro-rata share of subsequent amounts in default subject to caps, risk-based fees, procedural conditions for invocation after portfolio crystallization, and obligations on recoveries and subrogation.