{"id":358687,"date":"2026-03-23T15:31:40","date_gmt":"2026-03-23T10:01:40","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=358687"},"modified":"2026-03-23T15:31:40","modified_gmt":"2026-03-23T10:01:40","slug":"credit-guarantee-scheme-for-microfinance-institutions-2-0-cgsmfi-2-0","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/credit-guarantee-scheme-for-microfinance-institutions-2-0-cgsmfi-2-0\/","title":{"rendered":"Credit Guarantee Scheme for Microfinance Institutions-2.0 (CGSMFI-2.0)"},"content":{"rendered":"<p><strong>News: <\/strong>The Government of India has introduced CGSMFI-2.0 to increase credit flow to microfinance institutions and support small borrowers.<\/p>\n<h2>About Credit Guarantee Scheme for Microfinance Institutions-2.0 (CGSMFI-2.0)<\/h2>\n<figure id=\"attachment_358690\" aria-describedby=\"caption-attachment-358690\" style=\"width: 532px\" class=\"wp-caption aligncenter\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\" wp-image-358690\" src=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/03\/Source-KNN-India.jpg?resize=532%2C298&#038;ssl=1\" alt=\"Credit Guarantee Scheme for Microfinance Institutions-2.0 (CGSMFI-2.0)\" width=\"532\" height=\"298\" srcset=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/03\/Source-KNN-India.jpg?resize=300%2C168&amp;ssl=1 300w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/03\/Source-KNN-India.jpg?resize=1024%2C572&amp;ssl=1 1024w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/03\/Source-KNN-India.jpg?resize=768%2C429&amp;ssl=1 768w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/03\/Source-KNN-India.jpg?resize=1536%2C858&amp;ssl=1 1536w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/03\/Source-KNN-India.jpg?resize=1568%2C876&amp;ssl=1 1568w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/03\/Source-KNN-India.jpg?w=1577&amp;ssl=1 1577w\" sizes=\"auto, (max-width: 532px) 100vw, 532px\" \/><figcaption id=\"caption-attachment-358690\" class=\"wp-caption-text\">Source &#8211; KNN India<\/figcaption><\/figure>\n<ul>\n<li>CGSMFI-2.0 is a <strong>credit guarantee scheme<\/strong> that <strong>provides cover to banks against losses on loans given to MFIs for small borrowers.<\/strong><\/li>\n<li><strong>Launched in: <\/strong>The scheme was <strong>launched in March 2026.<\/strong><\/li>\n<li><strong>Nodal department: <\/strong>The scheme is under the <strong>Department of Financial Services.<\/strong><\/li>\n<li><strong>Managed by: <\/strong>The scheme is managed by <strong>National Credit Guarantee Trustee Company Limited (NCGTC).<\/strong><\/li>\n<li><strong>Aim: <\/strong>The scheme aims to <strong>strengthen lending to MFIs<\/strong> and ensure <strong>continuous credit flow to small borrowers<\/strong>, supporting financial inclusion.<\/li>\n<li><strong>Key Features<\/strong>\n<ul>\n<li><strong>Eligibility:<\/strong> The scheme <strong>covers existing or new small borrowers<\/strong> within the regulatory definition of microfinance as prescribed by RBI.<\/li>\n<li><strong>Guarantee coverage:<\/strong> The scheme provides <strong>80% coverage<\/strong> for <strong>small<\/strong>, <strong>75% for medium<\/strong>, and <strong>70% for large MFIs<\/strong> on defaulted amount.<\/li>\n<li><strong>Interest rate cap:<\/strong> Loans to MFIs are <strong>capped at EBLR or MCLR plus 2%<\/strong>, and lending to borrowers is capped below recent average rates.<\/li>\n<li><strong>Low guarantee fee:<\/strong> A fee of <strong>0.50% per annum<\/strong> is charged on sanctioned amount in the first year and on outstanding amount thereafter.<\/li>\n<li><strong>Defined limit and duration:<\/strong> The scheme is valid<strong> till 30 June 2026 or until \u20b920,000 crore of loans<\/strong> are guaranteed.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>News: The Government of India has introduced CGSMFI-2.0 to increase credit flow to microfinance institutions and support small borrowers. About Credit Guarantee Scheme for Microfinance Institutions-2.0 (CGSMFI-2.0) CGSMFI-2.0 is a credit guarantee scheme that provides cover to banks against losses on loans given to MFIs for small borrowers. Launched in: The scheme was launched in&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/credit-guarantee-scheme-for-microfinance-institutions-2-0-cgsmfi-2-0\/\">Continue reading <span class=\"screen-reader-text\">Credit Guarantee Scheme for Microfinance Institutions-2.0 (CGSMFI-2.0)<\/span><\/a><\/p>\n","protected":false},"author":10393,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,956,12039],"tags":[11872],"class_list":["post-358687","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-schemes-and-programs","category-knolls","tag-9pm-daily-factly","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/358687","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10393"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=358687"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/358687\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=358687"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=358687"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=358687"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}