NEW DELHI, Nov 11: The Union Cabinet on Wednesday approved a five-year extension of the Credit Guarantee Fund for Micro Units (CGFMU), extending its operation until March 2031.
Since the launch of the Pradhan Mantri Mudra Yojana (PMMY), lending institutions have sanctioned more than 60.36 crore loans worth Rs 43.34 lakh crore as of September 2026.
The scheme provides credit guarantee coverage to lending institutions through the National Credit Guarantee Trustee Company Limited (NCGTC), protecting them against the risk of loan defaults.
Announcing the Cabinet decisions, Information and Broadcasting Minister Ashwini Vaishnaw said the continuation of the CGFMU had been approved for another five years.
The Cabinet, chaired by Prime Minister Narendra Modi, also approved a corpus of Rs 5,000 crore to facilitate PMMY loans amounting to Rs 12.6 lakh crore, according to an official release.
Launched in January 2016, the Credit Guarantee Fund for Micro Units has played a significant role in supporting the expansion of Mudra loans and improving access to credit for micro-enterprises across the country, the release added
