Short Update
Banks seek extension of microloan guarantee scheme
Banks have asked the government to extend the Credit Guarantee Fund for Micro Units (CGFMU), which ended on March 31, 2026. Jana Small Finance Bank MD Ajay Kanwal told analysts the scheme was going through an approval process and was expected to reopen soon.
Launched in 2016, CGFMU supports collateral-free microloans of up to ₹20 lakh and overdraft facilities of up to ₹10,000 under Pradhan Mantri MUDRA Yojana. It also covers collateral-free loans above ₹10 lakh and up to ₹20 lakh for self-help groups.