New Delhi, March 21 -- The Centre has introduced Credit Guarantee Scheme for Microfinance Institutions-2.0 (CGSMFI-2.0), which will facilitate increased credit flow to the MFI sector.

The scheme aims to provide credit guarantee support through NCGTC to strengthen lending to MFIs and facilitates increased credit flow of up to Rs 20,000 crore to the NBFC-MFIs.

The scheme is expected to benefit approximately 36 lakh MFI borrowers.

An official release said that the scheme aims to provide guarantee cover to Banks/FIs through National Credit Guarantee Trustee Company Limited (NCGTC) against expected losses on the financial assistance extended by them to Non-Banking Financial Company-Microfinance Institutions (NBFC-MFIs) and MFIs for on-lendi...