New Delhi, Nov. 12 -- The Union Cabinet has approved the continuation of the Credit Guarantee Fund for Micro Units (CGFMU) for five years up to March 31, 2031, with a corpus of Rs 5,000 crore to facilitate loans worth Rs 12.6 lakh crore under the Pradhan Mantri Mudra Yojana (PMMY).

The scheme provides credit guarantee coverage to lending institutions through the National Credit Guarantee Trustee Company Limited (NCGTC) against the risk of loan defaults.

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, CGFMU supports lending to micro enterprises by providing guarantee coverage to financial institutions.

Under the sc...