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Economy 1 min read

Centre launches ₹20,000 crore Credit Guarantee Scheme for Microfinance Institutions 2.0

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The Government of India has rolled out the Credit Guarantee Scheme for Microfinance Institutions 2.0 (CGSMFI-2.0) with a corpus of ₹20,000 crore.

  • It offers guarantee cover to Member Lending Institutions (MLIs) that lend to microfinance institutions.
  • NBFC-MFIs give collateral-free loans to households with annual income up to ₹3,00,000.
  • The scheme is run by the National Credit Guarantee Trustee Company under the Ministry of Finance.
  • It is expected to advance financial inclusion, support small businesses and help reduce poverty.