{"id":94234,"date":"2026-03-22T13:52:45","date_gmt":"2026-03-22T08:22:45","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=94234"},"modified":"2026-03-23T15:17:22","modified_gmt":"2026-03-23T09:47:22","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 introduced Credit Guarantee Scheme for Microfinance Institutions-2.0 (CGSMFI-2.0).<\/span><\/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 aims to <\/span><b>provide guarantee cover to Banks\/ FIs through National Credit Guarantee Trustee Company Limited <\/b><span style=\"font-weight: 400;\">(NCGTC).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It provides guarantee<\/span> <span style=\"font-weight: 400;\">against expected losses on the financial assistance extended by <\/span><b>them to Non-Banking Financial Company-Microfinance Institutions<\/b><span style=\"font-weight: 400;\"> (NBFC-MFIs) and MFIs for on lending to small borrowers.<\/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> <b>Existing or new small borrowers<\/b><span style=\"font-weight: 400;\"> within the regulatory definition of <\/span><b>micro finance <\/b><span style=\"font-weight: 400;\">as prescribed by RBI from time to time.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Guarantee coverage:<\/b><span style=\"font-weight: 400;\"> 80% of amount in default for small, 75% for medium and 70% 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<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Valid till <\/span><b>30.06.2026 or loans till Rs. 20,000 crores<\/b><span style=\"font-weight: 400;\"> are guaranteed, whichever is earlier.<\/span><\/li>\n<\/ul>\n<h2><b>Impact of the scheme<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The scheme will facilitate increased credit flow to the MFI sector.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It is estimated that the scheme will facilitate on-lending by NBFC-MFIs\/ MFIs to <\/span><b>approximately 36 lakh small borrowers.<\/b><\/li>\n<\/ul>\n<p><b>Source: <\/b><strong><a href=\"https:\/\/www.pib.gov.in\/PressReleasePage.aspx?PRID=2243314&amp;reg=3&amp;lang=2\" 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, 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":4,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/94234\/revisions"}],"predecessor-version":[{"id":94444,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/94234\/revisions\/94444"}],"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}]}}