Credit Guarantee Scheme for Micro Finance Institutions (CGS-MFI) – Strengthening Last-Mile Lending

CGS-MFI was a scheme to provide guarantee against default on loans extended by MLIs to NBFC-MFIs and MFIs in the country at competitive rates to enable them to lend to existing and new microenterprises at reasonable rates.


Key Features:

  1. Supported loans extended to NBFC-MFIs/Microfinance Institutions (MFIs) by Banks for onward lending to micro-borrowers

  2. Covered up to 75% of defaults on eligible loan portfolios

  3. Coverage valid for a maximum of 3 years

  4. Encouraged wider financial outreach to underserved segments of society

  5. Strengthened the microfinance ecosystem during COVID recovery stage

CGSMFI enhanced confidence in lending to NBFC-MFIs/MFIs, boosting inclusive financial access for India’s informal and low-income sectors.


Know more: Credit Guarantee Scheme for Micro Finance Institutions

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