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Govt Boosts Microloan Access Until 2026
10 Jun
Summary
- Scheme validity extended to August 31, 2026.
- Maximum eligible loan amount increased to ₹1,000 crore.
- ₹770 crore in loans sanctioned under the scheme to date.
The Centre has extended the Credit Guarantee Scheme for Microfinance Institutions (CGSMFI-2.0) until August 31, 2026, or until guarantees reach ₹20,000 crore. This initiative, initially set to conclude on June 30, 2026, now offers enhanced support for the microfinance sector. The government has also substantially increased the maximum eligible loan amount for large NBFC-MFIs and MFIs from ₹300 crore to ₹1,000 crore, while maintaining the 20% Assets Under Management (AUM) cap. This move is expected to invigorate credit flow and broaden access to financial services for smaller enterprises. As of the latest data, ₹770 crore in loans have been sanctioned under the scheme.
