Credit guarantee scheme for MFI 2.0 gets extension

New Delhi: The Centre has extended the Credit Guarantee Scheme for Microfinance Institutions-2.0 (CGSMFI-2.0) up to August or until guarantees for an amount of ₹20,000 crore are issued.

The finance ministry Wednesday said the maximum loan amount capped to large-sized NBFC-MFIs and MFIs has been increased to ₹1,000 crore from ₹300 crore under the overall ceiling of 20% of assets under management (AUM).

"Extension in validity and increase in maximum loan amount capped to large-sized NBFC-MFIs/MFIs are expected to result in better utilisation of the scheme and facilitate increased credit flow to the MFI sector," the ministry noted in its statement.


It added that as of date, loans totalling ₹770 crore have been sanctioned under the scheme.

The scheme was originally to be operational till June or till loans of ₹20,000 crore are guaranteed, whichever is earlier.