India extends Mudra loan credit guarantee scheme for 5 years, targets ₹12.6 lakh crore loans
CNBC-TV18 7 hrs ago·11 Nov 2026, 10:35 am
The Union Cabinet has approved a five-year extension for the Credit Guarantee Fund for Micro Units (CGFMU) until March 2031. This move aims to support the government's flagship Mudra scheme, which provides credit to small and micro enterprises. The extension is expected to enable a total loan exposure of ₹12.6 lakh crore over this period, providing a significant boost to the micro-finance sector.
For investors, this policy expansion signals a continued focus on financial inclusion and the growth of the micro-finance industry. It could enhance the credit availability for small businesses, potentially driving economic activity. Market participants should monitor the rollout of these loans and the credit quality of borrowers to gauge the scheme's long-term impact on the financial system.
Excerpt from CNBC-TV18
Published On Nov 11, 2026 | 16:05 IST Last Updated On Nov 11, 2026 | 16:05 IST The Union Cabinet has extended the Credit Guarantee Fund for Micro Units until March 2031, enabling ₹12.6 lakh crore in loans under the Mudra scheme over five years. The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday…Read the original at CNBC-TV18
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