{"id":94234,"date":"2026-06-11T11:00:45","date_gmt":"2026-06-11T05:30:45","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=94234"},"modified":"2026-06-11T12:50:36","modified_gmt":"2026-06-11T07:20:36","slug":"credit-guarantee-scheme-for-microfinance-institutions-2-0","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/credit-guarantee-scheme-for-microfinance-institutions-2-0\/","title":{"rendered":"Credit Guarantee Scheme for Microfinance Institutions-2.0"},"content":{"rendered":"<h2><b>Credit Guarantee Scheme for Microfinance Institutions-2.0 Latest News<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Recently, the Government of India has approved extension in validity of the Credit Guarantee Scheme for Microfinance Institutions-2.0 (CGSMFI-2.0) upto 31.8.2026.<\/span><b>\u00a0<\/b><\/p>\n<h2><b>About Credit Guarantee Scheme for Microfinance Institutions-2.0<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It was <\/span><b>launched in 2026.<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It aims <\/span><b>to provide guarantee cover to Banks\/<\/b><span style=\"font-weight: 400;\"> FIs through <\/span><b>National Credit Guarantee Trustee Company Limited (NCGTC).<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It provides guarantee against expected losses on the financial assistance extended by them to <\/span><b><a href=\"https:\/\/vajiramandravi.com\/current-affairs\/what-is-a-non-banking-financial-company-nbfc\/\" target=\"_blank\">Non-Banking Financial Company<\/a>-Microfinance Institutions<\/b><span style=\"font-weight: 400;\"> (NBFC-MFIs) and MFIs for on <\/span><b>lending to small borrowers.<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Government of India has also approved an increase<\/span><b> in maximum loan amount<\/b><span style=\"font-weight: 400;\"> capped to <\/span><b>Large Sized NBFC-MFIs\/MFIs<\/b> <b>from \u20b9300 crores to \u20b91000 crores<\/b><span style=\"font-weight: 400;\"> under the overall ceiling of 20% of Assets under Management (AUM).<\/span><\/li>\n<\/ul>\n<h2><b>Features of the Scheme<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Eligible borrowers:<\/b><span style=\"font-weight: 400;\"> Existing or new small borrowers within the regulatory definition of micro finance as prescribed by RBI from time to time.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Guarantee coverage:<\/b> <b>80%<\/b><span style=\"font-weight: 400;\"> of amount in default for small, <\/span><b>75% for<\/b><span style=\"font-weight: 400;\"> medium and <\/span><b>70%<\/b><span style=\"font-weight: 400;\"> for large NBFC-MFIs\/ MFIs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Guarantee Fee:<\/b><span style=\"font-weight: 400;\"> 0.50% p.a., on sanctioned amount (1st year) &amp; outstanding amount (thereafter).<\/span><\/li>\n<\/ul>\n<h3><b>What is Microfinance?<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It refers to the <\/span><b>provision of small-scale financial services<\/b><span style=\"font-weight: 400;\">, including loans, savings, and insurance, to individuals and small businesses that lack access to traditional banking services.\u00a0<\/span><\/li>\n<\/ul>\n<p><b>Source: <\/b><strong><a href=\"https:\/\/www.pib.gov.in\/PressReleasePage.aspx?PRID=2271200&amp;reg=48&amp;lang=1\" target=\"_blank\" rel=\"nofollow noopener\">PIB<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Credit Guarantee Scheme for Microfinance Institutions-2.0 aims to provide guarantee cover to Banks\/ FIs through National Credit Guarantee Trustee Company Limited (NCGTC). Read more about Credit Guarantee Scheme for Microfinance Institutions-2.0, Latest News.<\/p>\n","protected":false},"author":24,"featured_media":94380,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[6283,21,22,23],"class_list":{"0":"post-94234","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"tag-credit-guarantee-scheme-for-microfinance-institutions-2-0","9":"tag-prelims-pointers","10":"tag-upsc-current-affairs","11":"tag-upsc-prelims-current-affairs","12":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/94234","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=94234"}],"version-history":[{"count":8,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/94234\/revisions"}],"predecessor-version":[{"id":107682,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/94234\/revisions\/107682"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/94380"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=94234"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=94234"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=94234"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}