Cabinet extends Mudra guarantee and Stand-Up India to March 31, 2031

Union Cabinet approved continuation of Credit Guarantee Fund for Micro Units (CGFMU) and Stand-Up India Scheme through March 31, 2031. The two extensions have a combined guarantee corpus of Rs 9,111 crore.

CGFMU has a Rs 5,000 crore corpus and is expected to support Rs 12.6 lakh crore in loans under Pradhan Mantri Mudra Yojana over five years. Guarantee coverage applies to eligible PMMY micro-enterprise loans up to Rs 20 lakh, and the annual guarantee fee falls from 1 per cent to 0.75 per cent. The extension covers PMMY loans from FY 2026-27 to FY 2030-31.

Stand-Up India Scheme has a Rs 4,111 crore guarantee corpus and is expected to support another 2.5 lakh women, Scheduled Caste (SC) and Scheduled Tribe (ST) entrepreneurs. It covers greenfield enterprises, or new ventures, with a standard guarantee fee of 0.50 per cent.