- While provisioning for loans by the member institutions, the loan that are guaranteed with DCGF can avail the discount of 75% on the actual provision requirement. Only 25% of the actual provision will be sufficient for such guaranteed loan.
- The member institutions with approval of the fund can write off the guaranteed loan provided that the member institution is unable to make recovery of loan despite of compliance of all the legal procuders for the recovery of loan.
- Diversification and transfer of risk.
- Reduction of collateral requirements for financing to bridge the gap and financial inclusion of poor and marginalized community.
- Enhancement of lending for micro, small and medium enterprises (MSMEs).
- Enhancement of Financial stability and economic growth.
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