{"id":132785,"date":"2026-11-12T14:34:30","date_gmt":"2026-11-12T09:04:30","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=132785"},"modified":"2026-11-12T14:37:49","modified_gmt":"2026-11-12T09:07:49","slug":"credit-guarantee-fund-for-micro-units","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/credit-guarantee-fund-for-micro-units\/","title":{"rendered":"Credit Guarantee Fund for Micro Units"},"content":{"rendered":"<h2><b>Credit Guarantee Fund for Micro Units Latest News<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The Union Cabinet, chaired has approved the continuation of Credit Guarantee Fund for Micro Units (CGFMU) for a period of five years upto 31.03.2031.<\/span><\/p>\n<h2><b>About Credit Guarantee Fund for Micro Units \u00a0 <\/b><\/h2>\n<ul>\n<li><span style=\"font-weight: 400;\">It was <\/span><b>launched in 2016.<\/b><\/li>\n<li><span style=\"font-weight: 400;\">It has acted as a major catalyst in enabling the growth of <\/span><b><a href=\"https:\/\/vajiramandravi.com\/upsc-exam\/pradhan-mantri-mudra-yojana\/\" target=\"_blank\">Pradhan Mantri Mudra Yojana<\/a> (PMMY) loans in the country.<\/b><\/li>\n<li><span style=\"font-weight: 400;\">The scheme provides <\/span><b>credit guarantee coverage<\/b><span style=\"font-weight: 400;\"> to the Lending Institutions through <\/span><b>National Credit Guarantee Trustee Company Limited (NCGTC) against default risk.<\/b><\/li>\n<li aria-level=\"1\"><b>Features<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">The fund will <\/span><b>provide guarantee coverage<\/b><span style=\"font-weight: 400;\"> for loans of <\/span><b>up to \u20b920 lakh extended<\/b><span style=\"font-weight: 400;\"> to eligible micro enterprises under PMMY.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">It will also <\/span><b>cover overdrafts of up to \u20b910,000<\/b><span style=\"font-weight: 400;\"> provided by banks through accounts under the Pradhan Mantri Jan Dhan Yojana (PMJDY).<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Loans granted to <\/span><b>self-help groups<\/b><span style=\"font-weight: 400;\"> (SHGs) with a portfolio ranging <\/span><b>from \u20b910 lakh to \u20b920 lakh<\/b><span style=\"font-weight: 400;\"> will also be eligible for coverage.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The guarantee coverage will be linked to the actual credit exposure of lending institutions. For working capital facilities, it will be based on the amount disbursed, <\/span><b>while for term loans,<\/b><span style=\"font-weight: 400;\"> it will be linked to the <\/span><b>outstanding loan amount.<\/b><\/li>\n<li><b>Guarantee Fee:<\/b><span style=\"font-weight: 400;\"> There will be reduction in the guarantee fee <\/span><b>from 1 per cent per annum to 0.75 per cent per annum<\/b><span style=\"font-weight: 400;\">. The fee <\/span><b>structure for SHG loans<\/b><span style=\"font-weight: 400;\"> will remain unchanged, <\/span><b>at 0.25 per cent<\/b><span style=\"font-weight: 400;\"> for the first year and 0.50 per cent in subsequent years.<\/span><\/li>\n<li><b>Duration of the Scheme<\/b><span style=\"font-weight: 400;\">: The Scheme would be applicable to all loans extended under PMMY.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><b>Source:<\/b> <strong><a href=\"https:\/\/www.pib.gov.in\/PressReleaseDetail.aspx?PRID=2334976&amp;reg=3&amp;lang=1\" target=\"_blank\" rel=\"nofollow noopener\">PIB<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Credit Guarantee Fund for Micro Units has acted as a major catalyst in enabling the growth of Pradhan Mantri Mudra Yojana (PMMY) loans in the country.<\/p>\n","protected":false},"author":24,"featured_media":132795,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[11442],"class_list":["post-132785","post","type-post","status-publish","format-standard","has-post-thumbnail","category-upsc-prelims-current-affairs","tag-credit-guarantee-fund-for-micro-units","no-featured-image-padding"],"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/132785","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=132785"}],"version-history":[{"count":5,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/132785\/revisions"}],"predecessor-version":[{"id":132812,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/132785\/revisions\/132812"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/132795"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=132785"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=132785"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=132785"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}