Government Extends Validity of Credit Guarantee Scheme for Microfinance Institutions-2.0 (CGSMFI-2.0), Increases Loan Limits under the scheme

• CGSMFI-2.0 is a credit guarantee scheme operated through the National Credit Guarantee Trustee Company (NCGTC) providing partial guarantee cover to banks/FIs lending to NBFC-MFIs/MFIs for on-lending to micro-borrowers.
• Government has extended validity of the scheme up to 31 August 2026 (or ₹20,000 crore guarantees issued, whichever earlier) and raised the loan cap for Large NBFC-MFIs from ₹300 cr → ₹1,000 cr.
• Relevant for GS-III (Inclusive growth, financial inclusion, banking-NBFC interface) and Prelims (schemes/agencies under Ministry of Finance).