Govt extends CGSMFI validity upto Aug 31
The Ministry of Finance on Wednesday approved extension in validity of the Credit Guarantee Scheme for Microfinance Institutions-2.0 (CGSMFI-2.0) upto August 31, 2026 for or
The Ministry of Finance on Wednesday approved extension in validity of the Credit Guarantee Scheme for Microfinance Institutions-2.0 (CGSMFI-2.0) upto August 31, 2026 for or till guarantees for an amount of Rs 20,000 crore are issued, whichever is earlier. It also gave nod to increase in maximum loan amount capped to Large Sized Non-Banking Financial Company-Microfinance Institutions (NBFC-MFIs) and MFIs from Rs 300 crores to Rs 1,000 crores under the overall ceiling of 20% of Assets under Management (AUM).Under the extension in validity and increase in maximum loan amount, it now expects better utilisation of the scheme and facilitate increased credit flow to the MFI sector.Earlier in March this year, the Centre had introduced the CGSMFI-2.0 scheme to provide guarantee cover to Banks/ FIs through Credit Guarantee Trustee Company Limited (NCGTC) against expected losses on the financial assistance extended by them to NBFC-MFIs/MFIs for on lending to small borrowers. As on June 10, the government informed that loans totalling to Rs 770 crore have been sanctioned under the scheme.
The BriefWire