Union Government is going to launch Rs.500 crore Credit Enhancement Fund (CEF) in July 2018 to facilitate infrastructure investments by insurance and pension funds.

• The CEF provides additional source of assaurance or gaurantee that borrower will service their loan.
• It also helps borrower to raise loans at lower interest rates.
• The  fund was first announced in Union Budget for fiscal year 2016-17.

CEF will provide credit enhancement for infrastructure projects which will help in upgrading credit ratings of bonds issued by infrastructure companies and facilitate investment from investors like pension and insurance funds.