India, Nov. 11 -- Cabinet Extends Credit Guarantee Fund for Micro Units The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the continuation of the Credit Guarantee Fund for Micro Units (CGFMU) with a corpus of Rs 5,000 crore for five years, up to December 31, 2031. The decision is aimed at strengthening access to institutional credit for micro enterprises and supporting aspiring entrepreneurs in setting up and expanding businesses.

The extended scheme is expected to facilitate loans worth Rs 12.6 lakh crore over the next five years. Under the arrangement, the National Credit Guarantee Trustee Company Limited (NCGTC) provides credit guarantee coverage to lending institutions against default risks.

CGFMU to Support ...