Credit Guarantee Scheme for Microfinance Institutions Context: The Government of India has extended the validity of the Credit Guarantee Scheme for Microfinance Institutions-2.0 (CGSMFI-2.0). The scheme will remain operational until 31 August 2026 or until guarantees amounting to ₹20,000 crore are issued, whichever occurs earlier. About CGSMFI-2.0 The Central Government launched CGSMFI-2.0 on 20 March 2026. The scheme provides guarantee cover to Banks and Financial Institutions (FIs) through the National Credit Guarantee Trustee Company Limited (NCGTC). The guarantee protects lenders against expected losses on loans provided to Non-Banking Financial Company-Microfinance Institutions (NBFC-MFIs) and MFIs, which subsequently lend to small borrowers. Loans worth ₹770 crore have been sanctioned under the scheme so far. Key Features Eligible Borrowers: Small borrowers as defined by the Reserve Bank of India (RBI), including both new and existing customers. Guarantee Coverage: 80% for small NBFC-MFIs/MFIs, 75% for medium-sized entities, and 70% for large entities. Guarantee Fee: 0.50% per annum on the sanctioned loan amount for the first year, and subsequently on the outstanding loan amount. About Microfinance Microfinance involves providing small-scale loans, savings, and insurance services to individuals and small businesses that lack access to formal banking services. MSME OSOP Support for Divyangjan Vishwakarma Artisans Context: The Ministry of Micro, Small and Medium Enterprises (MSME) has announced the implementation of the 'One Station One Product' (OSOP) scheme under the Pradhan Mantri Vishwakarma Yojana to enhance the prosperity of Vishwakarma artisans with disabilities (Divyangjan). One Station One Product Scheme The 'One District One Product' (ODOP) scheme was first launched in January 2018. The 'One Station One Product' scheme is an initiative launched by Indian Railways under the Ministry of Railways to promote the 'Support for Local Products' campaign. It provides specially designed outlets at railway stations across India, enabling local people to sell their traditional products.…
