The credit-guarantee scheme for microfinance companies has failed to gain traction. Banks have sanctioned around Rs 8,500 crore under the scheme, well short of the Rs 20,000 crore, according to sources. “Smaller MFIs struggled to raise funds, securing only about Rs 300 crore, while small and medium-sized lenders together received Rs 1,800 crore. Larger institutions, however, either did not take sanctions, as the scheme offered them little advantage,” said an industry official.