Mudra loan guarantee fee cut to 0.75%, scheme extended to 2031
In short
The Mudra loan guarantee fee has been cut to 0.75%, and the scheme will now run until 2031. The changes are meant to make borrowing cheaper and help micro enterprises get formal credit.
This matters for small businesses because lenders may find it easier to give them loans, which could improve access to funds.
What the reporting says
The Mudra loan guarantee fee has been cut to 0.75% and the scheme has been extended until 2031. The changes are aimed at lowering borrowing costs, expanding formal credit access and encouraging financial institutions to lend to micro enterprises. The brief does not add further policy details.
Why it matters
The Mudra loan guarantee fee has been reduced to 0.75% and the scheme has been extended until 2031. According to the source summaries, the policy is intended to lower borrowing costs, expand formal credit access and encourage financial institutions to lend to micro enterprises. The move directly affects small borrowers and the lenders that serve them, though the brief gives no other implementation details.