Credit Guarantee Scheme for Microfinance Institutions-2.0

On 21st March 2026, the Union Government introduced Credit Guarantee Scheme for Microfinance Institutions-2.0 (CGSMFI-2.0).

What is CGSMFI-2.0?

  • Objective: To provide guarantee cover to Banks/Financial Institutions (FIs) 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.
  • Managed By: National Credit Guarantee Trustee Company (NCGTC), wholly owned by Department of Financial Services, Ministry of Finance.
  • 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 ....
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