The Government of India launched the India Microfinance Equity Fund (IMEF) in the Union Budget 2011–12 with an initial corpus of ₹100 crore, later enhanced to ₹300 crore, with focus on smaller socially‑oriented Microfinance Institutions (MFIs).  IMEF is a perpetual and revolving fund aimed at extending assistance by way of equity and quasi equity products to MFIs with the objective of poverty alleviation and achieving long‑term sustainability of operations in unserved and underserved parts of the country.  The scope of the scheme has also been extended to include smaller NBFCs that serve micro and small enterprises (MSEs) through MUDRA‑defined micro‑enterprise loans.

IMEF assistance helps eligible entities to improve capital base, leverage additional debt raising, scaling-up operations, and enhance product offerings. Support is provided through various instruments like Subordinated Debt, OCPS, CRPS, and Equity investments.

The Fund is managed by SIDBI under guidelines approved by the Department of Financial Services, Ministry of Finance, Government of India.

Eligibility criteria and application format are provided in the attached Annexures.

Annexures

• IMEF – Eligibility Criteria 
• IMEF – Application Format