Centre Extends CGSMFI-2.0

On 10th June 2026, the Central Government extended the Credit Guarantee Scheme for Microfinance Institutions-2.0 (CGSMFI-2.0) till 31 August 2026 or until guarantees worth ₹20,000 crore are issued, whichever is earlier.

Key Points

Scheme Objective: Launched on 20 March 2026, the scheme provides guarantee cover to banks and financial institutions for loans extended to NBFC-MFIs and MFIs for onward lending to small borrowers.
Implementing Agency: The guarantee cover is provided through the National Credit Guarantee Trustee Company Limited (NCGTC).
Extended Validity: The scheme will now remain operational till 31 August 2026 or until the guarantee limit of ₹20,000 crore is reached.
Higher Loan Cap for Large MFIs: The maximum eligible loan amount for large-sized NBFC-MFIs/MFIs has been increased from ₹300 crore to ₹1,000 crore, subject to the overall ceiling of 20% of Assets Under Management (AUM).
Beneficiaries: Both existing and new small borrowers falling within the RBI’s definition of microfinance are eligible for loans under the scheme.