The Ministry of Finance (MoF) on October 24, 2024, issued amendments to the Scheme of Credit Guarantee Fund for Micro Units (CGFMU).
The following amendment has been stated:
• Paragraph 2 (xi) of Chapter I of Notification number S.O. 1443(E) dated 18th April, 2016 has been modified and shall read as:
"Micro Loan" means any financial assistance by way of collateral free/third party guarantee free loan/limit (currently Rs.20 lakh), extended by the lending institution to the eligible borrower, as per the guidelines prescribed by the Fund. Under the aegis of Pradhan Mantri MUDRA Yojana, MUDRA Ltd. has already been created to support development and financing of micro loans. The schematic interventions of MUDRA Ltd. have been named 'Shishu', 'Kishor' 'Tarun' and ‘Tarun Plus’ to signify the stage of growth/development and funding needs of the beneficiary micro unit/entrepreneur and also provide a reference point for the next phase of graduation/growth. They are presently defined as under:
o Shishu: covering loans up to 50,000/-
o Kishor: covering loans above 50,000/- and up to 5 lakh
o Tarun: covering loans above 5 lakh and up to 10 lakh
o Tarun Plus: covering loans above 10 lakh and up to 20 lakh for those entrepreneurs who have availed and successfully repaid previous loans under the ‘Tarun’ category.
Further, Overdraft facility of Rs.10, 000/- sanctioned under PMJDY accounts shall also be eligible to be covered under Credit guarantee Fund.
This notification will come into force from October 24, 2024.
[Notification No S.O. 4658(E)]
