Government Extends Credit Guarantee Scheme for Microfinance Institutions, Raises Loan Limit to ₹1,000 Crore
CGSMFI-2.0 was introduced by the Central Government on March 20, 2026. The scheme provides guarantee cover to banks and financial institutions through the National Credit Guarantee Trustee Company Limited against expected losses on financial assistance extended to NBFC-MFIs and MFIs. These institutions then lend the funds onward to small borrowers. As of the latest update, loans worth ₹770 crore have already been sanctioned under the scheme.