MSME Credit Guarantee Scheme

A Financial Guarantee is a type of promise given by a guarantor to take responsibility for the borrower in the case of default in payments to the Lender. ECGC offers Financial Guarantees to back the debt of large corporations (the borrower) in payments to the Lending Institution. The guarantee is provided to the Lending Institution covering the risk of default emanating from the borrower and can be called upon if the borrower defaults. Financial guarantees are in many countries around the world, regarded as a policy instrument to support economic growth.

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