Centre approves credit guarantee fund for micro units

According to a PIB report, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the continuation of the Credit Guarantee Fund for Micro Units (CGFMU). The scheme will remain in operation for the next five years, i.e., until 31.03.2031. Under this decision, a corpus of ₹5,000 crore has been approved, which will be helpful in providing loan facilities of up to ₹12.6 lakh crore under the Pradhan Mantri Mudra Yojana (PMMY).

The scheme provides credit guarantee coverage against default risk to lending institutions through the National Credit Guarantee Trustee Company Limited (NCGTC). According to data as of September 2026, more than 60.36 crore loans have been sanctioned since the inception of the Mudra scheme, amounting to a total of ₹43.34 lakh crore. Launched in January 2016, this fund has been acting as a key catalyst in the growth of Mudra loans in the country.

The Union Council of Ministers is the primary executive organ of the Government of India, which aids and advises the President in the implementation of their functions. Functioning under the chairmanship of the Prime Minister, this council includes heads of various ministries. This council is collectively responsible to the Lok Sabha.