PM Modi Says Continuation of CGFMU Will Empower Aspiring Entrepreneurs and Youth
Cabinet extends CGFMU until March 2031 with a Rs 5,000-crore corpus to support over Rs 12.5 lakh crore in MUDRA loans, while Stand-Up India aims to benefit 2.5 lakh additional entrepreneurs.
NEW DELHI, Nov 11: Prime Minister Narendra Modi on Wednesday welcomed the Union Cabinet’s decision to extend the Credit Guarantee Fund for Micro Units (CGFMU), describing it as a significant step towards strengthening entrepreneurship and creating new opportunities for India’s aspiring business owners, particularly young people.
The Cabinet, chaired by Modi, approved the continuation of the scheme for another five years, until March 31, 2031. The initiative provides credit guarantee coverage to lending institutions through the National Credit Guarantee Trustee Company, helping them manage the risks associated with loan defaults.
Highlighting the benefits of the decision, Modi said the scheme would have a corpus of Rs 5,000 crore and facilitate more than Rs 12.5 lakh crore in loans under the Pradhan Mantri MUDRA Yojana over the next five years.
In a post on X, the prime minister said the extended framework would provide credit guarantee support for collateral-free loans of up to Rs 20 lakh under the MUDRA scheme. He added that reduced guarantee fees would further encourage financial institutions to extend credit to micro-enterprises.
Modi emphasised that the government’s objective was to enable more young Indians to transform their business ideas into successful enterprises, generate employment and contribute to economic development.
He also welcomed the Cabinet’s approval for continuing the Stand-Up India Scheme for five years, saying the move would provide fresh momentum to entrepreneurship and economic growth.
The scheme focuses on promoting business ownership among women and members of Scheduled Castes (SCs) and Scheduled Tribes (STs). Under the extended programme, financial assistance is expected to reach an additional 2.5 lakh entrepreneurs by March 31, 2031.
The continuation of both initiatives is aimed at improving access to institutional finance, encouraging inclusive enterprise development and supporting the growth of micro and small businesses across the country.
