The Union Cabinet allocated ₹4,111 crore for the Stand-Up India fund and ₹5,000 crore for the Micro Units fund under the Pradhan Mantri Mudra Yojana. The Union Cabinet on Wednesday approved the continuation of two credit guarantee schemes for five years, allocating ₹4,111 crore for the Stand-Up India fund and ₹5,000 crore for the Micro Units fund under the Pradhan Mantri Mudra Yojana (PMMY), aimed at expanding collateral-free credit to women, SC/ST and micro entrepreneurs, according to an official release.The annual guarantee fee will be reduced from 1% to 0.75% under the PMMY scheme. (ANI/ Representational)According to the government, the Credit Guarantee Fund for Stand-Up India will guarantee loans above ₹10 lakh and up to ₹1 crore for women and SC/ST entrepreneurs setting up greenfield enterprises.The scheme targets an average of two loans per bank branch—one to a woman entrepreneur and one to an SC/ST entrepreneur. The guarantee fee will be 0.50% annually, with no additional risk premium, while the guarantee cover will be increased to 85% across loan sizes.Borrowers will also receive support through the loan process and business cycle.Meanwhile, the PMMY Credit Guarantee Fund is expected to support Mudra loans worth ₹12.60 lakh crore. It will cover PMMY loans of up to ₹20 lakh, overdrafts of up to ₹10,000 under the Pradhan Mantri Jan Dhan Yojana and self-help group loans of ₹10-20 lakh, all without collateral.Also Read I ₹3,230 crore for Yuge Yugeen Bharat National Museum">Union Cabinet approves ₹3,230 crore for Yuge Yugeen Bharat National MuseumThe annual guarantee fee will be reduced from 1% to 0.75%, while the government plans to strengthen the claim process for lenders to improve credit flow to micro entrepreneurs.CabinetGet Latest News, breaking headlines, and top India News, and today real-time updates from across the nation. Stay informed on politics, government policies, crime, Today Weather, and major developments on Hindustan Times
Stand-Up India and Mudra Yojana extended by Union Cabinet for 5 more years
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