New Delhi, Nov. 11 -- The Union Cabinet on Wednesday approved the continuation of the Credit Guarantee Fund for Micro Units (CGFMU) for another five years till March 31, 2031, with a corpus of Rs 5,000 crore to support loans worth Rs 12.6 lakh crore under the Pradhan Mantri Mudra Yojana (PMMY).

The decision, taken at a Cabinet meeting chaired by Prime Minister Narendra Modi, aims to improve access to collateral-free loans for micro entrepreneurs and reduce borrowing-related costs.

Briefing the media on the Cabinet decisions, Union Minister Ashwini Vaishnaw said, "The scheme has been extended and strengthened for another five years. Several changes have been made, including reducing the guarantee fee to bring down costs. Steps have also ...