PMMY and Stand-Up India extended to March 31, 2031

Union Cabinet extended Pradhan Mantri Mudra Yojana (PMMY) and Stand-Up India for five years, until March 31, 2031. It approved Rs 5,000 crore for the Credit Guarantee Fund for Micro Units and Rs 4,111 crore for Stand-Up India, according to a Press Information Bureau statement.

For PMMY, the annual loan guarantee fee has been cut from 1% to 0.75%. The government expects the continued guarantee facility to support loans worth Rs 12.6 lakh crore over five years, including cover for eligible micro-enterprise loans up to Rs 20 lakh.

Stand-Up India targets 2.5 lakh additional women, SC and ST entrepreneurs. Eligible borrowers can get loans above Rs 10 lakh and up to Rs 1 crore for greenfield enterprises. Loans can cover up to 85% of project cost, and guarantee cover is 85% of the loan amount. The guarantee fee is 0.50% under the extended framework.