Under the modified Partial Credit Guarantee Scheme, sovereign guarantee of up to 20 per cent of first loss will be provided to state-owned banks for purchase of bonds or commercial papers of NBFCs, MFIs and housing finance companies (HFCs) having a credit rating of AA or below, including unrated paper with original maturity of up to one year.

Source : The Economic Times

Link : https://economictimes.indiatimes.com/news/economy/policy/govt-eases-norms-of-partial-credit-guarantee-scheme-to-help-nbfcs-hfcs/articleshow/75848244.cms