Govt extends credit guarantee scheme for microfin cos by 2 mos till Aug 31
This story was originally published at 17:45 IST on 10 June 2026
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--Govt extends credit guarantee scheme for microfinance institutions
--Govt extends credit guarantee scheme for microfinance cos till Aug 31
--Govt ups loan cap for large NBFC-microfin cos to INR 10 bln from INR 3 bln
--Govt sanctioned INR-7.7-bln loans in microfin cos' credit guarantee plan
NEW DELHI – The government has extended the Credit Guarantee Scheme for Microfinance Institutions-2.0 by two months till Aug. 31 or till guarantees amount to INR 200 billion, the finance ministry said Wednesday. The government has also hiked the loan limit for large microfinance institutions to INR 10 billion from INR 3 billion under the overall ceiling of 20% of assets under management, the ministry said.
"Extension in validity and increase in maximum loan amount capped to Large Sized NBFC-MFIs/MFIs (non-banking financial company-microfinance institutions/ microfinance institutions) is expected to result in better utilisation of the scheme and facilitate increased credit flow to the MFI sector," the ministry said in a release.
The government had introduced the scheme on Mar. 20 to provide guarantee cover to banks and financial institutions through the National Credit Guarantee Trustee Co. Ltd. against expected losses on the financial assistance extended by them to NBFC-MFIs and MFIs for lending to small borrowers. As of date, loans totalling INR 7.70 billion have been sanctioned under the scheme. End
Reported by Priyasmita Dutta
Edited by Avishek Dutta
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