Cabinet extends Mudra credit guarantee fund with ₹5,000 crore corpus

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11 Nov 2026, 4:38 pm IST1 min read

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The Union Cabinet has extended the Credit Guarantee Fund for Micro Units through March 31, 2031, with a ₹5,000 crore corpus. The fund protects lenders against default on eligible loans, including Mudra loans of up to ₹20 lakh for microenterprises.

The Ministry of Finance estimates that the extension will support ₹12.6 lakh crore in lending over five years.

The annual guarantee fee falls from 1% to 0.75%. The fee for self-help group loans remains unchanged, the ministry said.

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Credit: Ministry of Finance via Press Information Bureau

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