Cabinet extends Mudra credit guarantee scheme to 2031
In short
The Cabinet has extended the Credit Guarantee Fund for Micro Units until March 2031 and set a ₹5,000 crore corpus.
The plan is meant to help support ₹12.6 trillion in loans under the Mudra scheme, which matters for micro businesses seeking credit.
What the reporting says
The move is intended to support ₹12.6 trillion in loans under the Mudra scheme. The extension is aimed at facilitating credit for micro units through the guarantee fund.
Why it matters
The Cabinet’s extension of the Credit Guarantee Fund for Micro Units to March 2031, with a ₹5,000 crore corpus, is meant to support lending under the Mudra scheme. The reported target of ₹12.6 trillion in loans points to a large government-backed credit push for micro units. The action affects small borrowers and lenders tied to the scheme.