New Delhi, Nov 11: Prime Minister Narendra Modi on Wednesday said the cabinet’s approval for the continuation of the Credit Guarantee Fund for Micro Units (CGFMU) is a major boost for India’s aspiring entrepreneurs, especially the youth.
The Union Cabinet, chaired by Modi, has approved the continuation of the CGFMU, which provides credit guarantee coverage to lending institutions through National Credit Guarantee Trustee Company against default risk, for a period of five years up to March 31, 2031.
“The Cabinet approval for continuation of the Credit Guarantee Fund for Micro Units is a major boost for India’s aspiring entrepreneurs, especially our youth! What does this mean? Rs 5,000 crore corpus to help facilitate over Rs 12.5 lakh crore in MUDRA loans over the next 5 years. Credit guarantee support for collateral-free loans up to Rs 20 lakh under PM MUDRA Yojana,” the prime minister said in a post on X.
Modi said lower guarantee fees will encourage lending to micro-enterprises and asserted that the government’s aim is to empower more young Indians to turn their ideas into enterprises, create opportunities and become job creators.
The prime minister also said that the Union Cabinet’s decision for the continuation of Stand-Up India Scheme for a period of five years will give fresh impetus to enterprise creation and economic growth.
The scheme aims to promote entrepreneurship among women, Scheduled Castes (SCs), and Scheduled Tribes (STs) and aims to provide financial assistance to additional 2.5 lakh entrepreneurs in a span of five years till March 31, 2031.
“A fresh impetus to enterprise creation and economic growth,” he said. (PTI)



