Sub-prime lending by PSBs rises on the back of govt guarantees

Public sector banks in India are actively lending to Micro, Small, and Medium Enterprises. This lending focuses on new and lower-rated businesses. Government guarantee schemes facilitate this. Data from the Reserve Bank of India shows a decrease in subprime borrowers. Private banks focus on super-prime borrowers. Government schemes like CGFMU and ECLGS support MSME lending.

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