The Ministry of Education (MoE) on September 02, 2026, has notified the inclusion of eligible Scheduled State Cooperative Banks and Scheduled Urban Cooperative Banks as Member Lending Institutions (MLIs) under the Credit Guarantee Fund Scheme for Education Loans (CGFSEL). The notification continues the earlier framework and expands the list of eligible lending institutions.
The following has been stated:
Eligible cooperative banks must satisfy prescribed conditions, including being included in the Second Schedule of the RBI Act, 1934, not being under the Supervisory Action Framework in the preceding two financial years, having no monetary penalty in the preceding three years, maintaining a CRAR of at least 11.5%, meeting the prescribed net-worth requirement, maintaining GNPA below 7% and NNPA not exceeding 3%, and having earned net profit in at least three of the preceding four financial years.
The National Credit Guarantee Trustee Company Ltd. (NCGTC) will conduct periodic/annual assessments to ensure that the listed Scheduled State Cooperative Banks and Scheduled Urban Cooperative Banks continue to meet the eligibility criteria under CGFSEL.
The notification also provides the list of eligible Scheduled State Cooperative Banks and Scheduled Urban Cooperative Banks, including banks from Maharashtra, such as Maharashtra State Co-operative Bank, Janata Sahakari Bank Pune, Cosmos Co-operative Bank, and other eligible institutions.
[No. 18-1/2013-U.5 (Vol. III).]
