The Union Cabinet on Wednesday (November 11, 2026) approved the continuation of the Credit Guarantee Fund for Micro Units (CGFMU) for five years up to March 2031, a move that will facilitate loans of ₹12.6 lakh crore.
The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday (November 11) gave its nod to a corpus of ₹5,000 crore facilitating PMMY loans amounting to ₹12.6 lakh crore, an official release said.
In a briefing on the decisions taken at the Cabinet meeting, Information and Broadcasting Minister Ashwini Vaishnaw said that the Credit Guarantee Fund for Micro Units provides credit guarantee coverage to lending institutions — mitigating the risk of default —through the National Credit Guarantee Trustee Company Limited (NCGTC). The release said collateral-free loans under the Pradhan Mantri Mudra Yojana have created a whole new generation of entrepreneurs who previously could not avail loans from the formal banking system.
“The extension of the CGFMU scheme will enable loans of ₹12.6 lakh crore over the next five years,” it said, adding that the scheme will act as a catalyst for young, aspiring entrepreneurs to set up and grow businesses.
