SchemesMonday, 23 March 2026·The Hindu
CGSMFI-2.0 launched to guarantee microfinance loans up to ₹20,000 crore for small borrowers
The government launched CGSMFI-2.0 to support microfinance institutions and small borrowers with guarantees up to ₹20,000 crore.
Key highlights
Direct fact
In March 2026, the Government of India launched the Credit Guarantee Scheme for Microfinance Institutions-2.0 (CGSMFI-2.0) to support small borrowers, with guarantees available until 30 June 2026 or up to ₹20,000 crore in loans.
Key specifics
- The scheme covers existing or new small borrowers meeting RBI microfinance definitions.
- Guarantee coverage is 80% for Small MFIs, 75% for Medium MFIs and 70% for Large MFIs.
- The guarantee fee is 0.50% per annum on sanctioned or outstanding amounts.
- About 36 lakh small borrowers are expected to benefit from the scheme.
- The scheme is backed by NCGTC to help banks lend to smaller NBFC-MFIs.
Exam lens
Financial inclusion question, CGSMFI-2.0, 30 June 2026, ₹20,000 crore, 36 lakh borrowers, NCGTC; TNPSC may ask the coverage percentages and the implementing body.