Cabinet extends credit guarantee scheme for micro units till March 2031
12/11/2026
New Delhi, Nov 11: The Union Cabinet on Wednesday approved a five-year extension of the Credit Guarantee Fund for Micro Units (CGFMU) till March 2031 to strengthen credit support for micro enterprises under the Pradhan Mantri Mudra Yojana (PMMY).
The Cabinet, chaired by Prime Minister Naren-dra Modi, also approved a corpus of Rs. 5,000 crore to facilitate Mudra loans amounting to Rs. 12.6 lakh crore, according to an official statement. Information and Broadcasting Minister Ashwini Vaishnaw said the continuation of the credit guarantee fund had been approved for another five years.
Since the launch of PMMY, lending institutions have sanctioned more than 60.36 crore loans amounting to Rs. 43.34 lakh crore as of September 2026.
Launched in January 2016, the CGFMU provides credit guarantee coverage through the National Credit Guarantee Trustee Company Limited (NCGTC) to lending institutions against the risk of loan defaults. The extension is expected to strengthen lending support to micro enterprises and facilitate greater access to institutional credit.
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