GoI Introduces CGSMFI 2.0 to Facilitate Credit Flow to MFI
In March 2026, the Government of India (GoI) introduced the Credit Guarantee Scheme for Microfinance Institutions 2.0 (CGSMFI-2.0), which will facilitate increased credit flow to the Microfinance Institutions (MFI).
Key Highlights
Purpose: The scheme aims to provide guarantee cover to Member Lending Institutions (MLI) against expected losses on the financial assistance extended by them to Non-Banking Financial Company (NBFC)-MFIs and MFIs for on lending to small borrowers.
Beneficiary: The scheme is expected to benefit approximately 36 lakh borrowers.
Managed by: The scheme will be managed and operated by National Credit Guarantee Trustee Company (NCGTC), wholly owned by the Department of Financial services, Ministry of Finance (MoF).
Effective from: The scheme shall come into force from 20.03.2026.
Tenure: This scheme will be valid till 30.06.2026 or till loan guarantees of Rs 20,000 crores (Cr) are issued, whichever is earlier.