MFI Stocks Gain Attention Post-CGSMFI 2.0 Launch, Yet IIFL Warns of Uneven Benefits
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CGSMFI 2.0 Boosts MFI Stocks, But IIFL Warns Not All Will Benefit
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CNBC TV18•23-03-2026, 07:27
CGSMFI 2.0 Boosts MFI Stocks, But IIFL Warns Not All Will Benefit
•Central government launches Credit Guarantee Scheme for MFIs 2.0 (CGSMFI 2.0) to provide guarantees for bank and financial institution lending to NBFC-MFIs and MFIs.
•Scheme aims to facilitate credit flow of up to ₹20,000 crore, covering on-lending to eligible small borrowers.
•Guarantee cover ranges from 70% to 80% based on MFI size; guarantee fee set at 0.50%.
•IIFL notes the ₹20,000 crore corpus is higher than the previous version but warns the ₹300 crore cap per MFI may not benefit larger players.
•Brokerage also suggests improved funding for smaller NBFC-MFIs could impact market share of larger lenders and negatively affect NBFCs lending to MFIs.
