Extracted Data Points

  • Credit Guarantee Scheme for Microfinance Institutions-2.0 (CGSMFI-2.0) validity extended until August 31, 2026
  • Scheme extension also valid until guarantees for ₹20,000 crore are issued, whichever comes earlier
  • Maximum loan amount cap for Large Sized NBFC-MFIs/MFIs increased from ₹300 crores to ₹1000 crores
  • Increased loan cap remains under overall ceiling of 20% of Assets under Management (AUM)
  • Loans totaling ₹770 crore have been sanctioned under CGSMFI-2.0 as of current date
  • Scheme aims to facilitate increased credit flow of up to ₹20,000 crore to NBFC-MFIs
  • Scheme introduced by Central Government on March 20, 2026
  • Provides guarantee cover to Banks/Financial Institutions through National Credit Guarantee Trustee Company Limited (NCGTC)
  • Covers expected losses on financial assistance extended to Non-Banking Financial Company-Microfinance Institutions (NBFC-MFIs) and MFIs
  • Eligible borrowers: Existing or new small borrowers within RBI's regulatory definition of micro finance
  • Guarantee coverage: 80% for small, 75% for medium, and 70% for large NBFC-MFIs/MFIs
  • Guarantee Fee: 0.50% p.a. on sanctioned amount (1st year) & outstanding amount (thereafter)
  • Interest Rate cap: EBLR or MCLR + 2% p.a. on loans by MLIs to NBFC-MFIs or MFIs
  • On-lending interest rate cap: 1% below average rate of lending in past 6 months for small borrowers