UP CM Yogi Adityanath welcomed the extension of the Credit Guarantee Fund for Micro Units until 2031, which aims to provide Rs 12.6 lakh crore in loans, supporting self-employment and the growth of micro-enterprises under the PMMY scheme.

Yogi Adityanath Welcomes Cabinet Decision on PMMY Extension

Uttar Pradesh Chief Minister Yogi Adityanath on Wednesday welcomed the Union Cabinet's decision to extend the Credit Guarantee Fund for Micro Units (CGFMU) under the Pradhan Mantri Mudra Yojana (PMMY) for five years, until March 31, 2031, saying the move would facilitate ₹12.6 lakh crore in loans to entrepreneurs over the next five years. In a post on X, Yogi Adityanath commended the decision taken by the Union Cabinet under the chairmanship of Prime Minister Narendra Modi, saying it would strengthen the country's micro-enterprise sector and promote self-employment.

"It is highly commendable that, under the chairmanship of the esteemed Prime Minister, Shri Narendra Modi ji, the Union Cabinet today approved extending the Credit Guarantee Fund for Micro Units (CGFMU) under the Pradhan Mantri Mudra Yojana for a period of five years, until 31 March 2031," he said.

Economic Impact and Atmanirbhar Bharat Goals

The Uttar Pradesh Chief Minister said the extension would help provide entrepreneurs with ₹12.6 lakh crore in loans over the next five years. He added that the decision would contribute to building an 'Atmanirbhar Bharat' (self-reliant India), promoting self-employment and giving fresh impetus to the country's micro-enterprise sector.

"The extension of this scheme will help provide entrepreneurs with ₹12.6 lakh crore in loans over the next five years. This decision will prove significant in building an 'Atmanirbhar Bharat' (self-reliant India), promoting self-employment and giving fresh impetus to the country's micro-enterprise sector," he said.

Yogi Adityanath also expressed gratitude to the Prime Minister for the decision, describing it as farsighted. This comes after the Union Cabinet on Wednesday approved the continuation of the Credit Guarantee Fund for Micro Units (CGFMU) for another five years till March 31, 2031, with a corpus of Rs 5,000 crore to support loans worth Rs 12.6 lakh crore under the Pradhan Mantri Mudra Yojana (PMMY).

Key Changes to the Scheme

The decision, taken at a Cabinet meeting chaired by Prime Minister Narendra Modi, aims to improve access to collateral-free loans for micro entrepreneurs and reduce borrowing-related costs. Briefing the media on the Cabinet decisions, Union Minister Ashwini Vaishnaw said, "The scheme has been extended and strengthened for another five years. Several changes have been made, including reducing the guarantee fee to bring down costs. Steps have also been taken to increase the amount of credit available."

According to the official release, the annual guarantee fee under the scheme has been reduced from 1 per cent to 0.75 per cent. The revised scheme will provide guarantee coverage for loans of up to Rs 20 lakh extended to eligible micro enterprises under PMMY. It will also cover overdraft facilities of up to Rs 10,000 provided by banks under the Pradhan Mantri Jan Dhan Yojana (PMJDY) and loans between Rs 10 lakh and Rs 20 lakh extended to Self Help Groups (SHGs). (ANI)

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