Cabinet approves extension of Credit Guarantee Fund for MSMEs

GreyOak summary

The Union Cabinet approved a five-year extension of the Credit Guarantee Fund for Micro Units (CGFMSU) until March 31, 2031. This initiative under the PM Mudra Yojana allocates a corpus of 5,000 crore rupees to facilitate loans worth 12.6 lakh crore. The fund provides credit guarantee coverage to lending institutions against default risks via the National Credit Guarantee Trustee Company.