The Ministry of Finance extended the validity of the Credit Guarantee Scheme for Microfinance Institutions-2.0 (CGSMFI-2.0) until August 31, 2026, or until guarantees worth ₹20,000 crore are issued. The maximum loan limit for Large-Sized NBFC-MFIs has been raised from ₹300 crore to ₹1,000 crore, subject to 20% of their Assets Under Management (AUM). The guarantee fee is 0.50% per annum; the guarantee cover is 80% for small, 75% for medium, and 70% for large NBFC-MFIs. CGSMFI is administered by the National Credit Guarantee Trustee Company (NCGTC) under the Ministry of Finance.
Economy
Govt Extends CGSMFI-2.0 Validity to August 2026; Raises Loan Limit for Large NBFC-MFIs to ₹1,000 Crore
Key Points
- The Ministry of Finance extended the validity of the Credit Guarantee Scheme for Microfinance Institutions-2.0 (CGSMFI-2.0) until August 31, 2026, or until guarantees worth ₹20,000 crore are issued
- The maximum loan limit for Large-Sized NBFC-MFIs has been raised from ₹300 crore to ₹1,000 crore, subject to 20% of their Assets Under Management (AUM)
- The guarantee fee is 0.50% per annum; the guarantee cover is 80% for small, 75% for medium, and 70% for large NBFC-MFIs
- CGSMFI is administered by the National Credit Guarantee Trustee Company (NCGTC) under the Ministry of Finance
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• CGSMFI-2.0 extended till: August 31, 2026 or ₹20,000 crore guarantees issued • Large NBFC-MFI loan limit raised: ₹300 crore → ₹1,000 crore (max 20% of AUM) • Guarantee cover: 80% (small) / 75% (medium) / 70% (large); administered by NCGTC
