TaxTMI 
TaxTMI 
Government Extends Validity of Credit Guarantee Scheme for Microfinance Institutions-2.0 (CGSMFI-2.0), Increases Loan Limits under the scheme
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....overnment Extends Validity of Credit Guarantee Scheme for Microfinance Institutions-2.0 (CGSMFI-2.0), Increases Loan Limits under the scheme<BR>News and Press Release<BR>Dated:- 10-6-2026<BR><BR>Loans totalling to Rs.770 crore have been sanctioned under CGSMFI-2.0, Scheme aims to provide credit guarantee support through NCGTC to strengthen lending to MFIs and facilitate increased credit flow of up....
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.... to Rs.20,000 crore to NBFC-MFIs The Government of India has approved extension in validity of the Credit Guarantee Scheme for Microfinance Institutions-2.0 (CGSMFI-2.0) upto 31.8.2026 or till guarantees for an amount of Rs.20,000 crore are issued, whichever is earlier. The Government of India has also approved increase in maximum loan amount capped to Large Sized NBFC-MFIs/MFIs from ....
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....Rs.300 crores to Rs.1000 crores under the overall ceiling of 20% of Assets under Management (AUM). Impact: Extension in validity and increase in maximum loan amount capped to Large Sized NBFC-MFIs/MFIs is expected to result in better utilisation of the scheme and facilitate increased credit flow to the MFI sector. Background: Central Government introduced CGSMFI-2.0 scheme on Marc....
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....h 20, 2026. The scheme aims to provide guarantee cover to Banks/ FIs through National Credit Guarantee Trustee Company Limited (NCGTC) against expected losses on the financial assistance extended by them to Non-Banking Financial Company-Microfinance Institutions (NBFC-MFIs) and MFIs for on lending to small borrowers. As on date, loans totalling to Rs.770 crore have been sanctioned under the s....
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....cheme. Salient features of the scheme: • Eligible borrowers: Existing or new small borrowers within the regulatory definition of micro finance as prescribed by RBI from time to time. • Guarantee coverage: 80% of amount in default for small, 75% for medium and 70% for large NBFC-MFIs/ MFIs. • Guarantee Fee: 0.50% p.a., on sanctioned amount (1st year) & outs....
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....tanding amount (thereafter). • Interest Rate: Capped at EBLR or MCLR + 2% p.a., on loans by MLIs to NBFC-MFIs or MFIs. While on-lending to small borrowers, these MFIs/NBFC-MFIs shall cap the interest rate at 1% below the average rate of lending in past 6 months. =============<BR> News - Press release - PIB....