Cabinet extends Mudra Credit Guarantee scheme till 2031, targets Rs 12.6 lakh cr in loans

New Delhi, Nov 11 (UNI) The union Cabinet on Wednesday approved a five-year extension of the Credit Guarantee Fund for Micro Units (CGFMU) until March 31, 2031, with a corpus of Rs 5,000 crore, paving the way for facilitating loans worth Rs 12.6 lakh crore under the Pradhan Mantri Mudra Yojana (PMMY) over the next five years. The decision is aimed at strengthening collateral-free institutional lending to micro enterprises and encouraging banks and other financial institutions to extend credit to small entrepreneurs who often struggle to access formal financing because of inadequate security or lack of conventional collateral. Announcing the…