ReferIndia News Government Sanctions Rs 20,000-Crore Boost for Microfinance Institutions

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Government Sanctions Rs 20,000-Crore Boost for Microfinance Institutions

Published on: March 20, 2026, 9:12 p.m. | Source: Devdiscourse

The government has approved a Rs 20,000-crore credit guarantee scheme to support microfinance institutions facing funding challenges. The scheme, known as CGSMFI-2.0, involves loans from member lending institutions to NBFC-MFIs and MFIs, with specific interest rate caps and loan conditions. The initiative aims to unlock liquidity and aid small borrowers.

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