Maharashtra cabinet on Wednesday cleared the proposal to increase government guarantees to Maulana Azad Minorities Financial Development Corporation from Rs 30 crore to Rs 500 crore, to avail loans from National Minorities Development and Finance Corporation (NMDFC).

“The increase in government guarantee would allow the corporation to seek more loans from NMFDC and distribute it to applicants,” an official said.

The decision has been taken a month after Deputy CM and Finance minister Ajit Pawar held a meeting of Minorities Development Department promising the same to the delegation of Muslim organisations.

The state government had given a loan guarantee of Rs 30 crore to the corporation in 2006, based on which NMDFC has given loans amounting to Rs 110.34 crore till now.