On July 01, 2021, the Ministry of Finance has amended the Scheme known as the Credit Guarantee Fund for Micro Units (CGFMU)
- In the said Scheme, in paragraph 2 relating to Definitions,—
(a) in sub-paragraph (xi) relating to ‘Micro Loan’, the brackets and words “(Interest rate as stipulated by Mudra; presently not to exceed 12% p.a.)” shall be omitted;
- for sub-paragraph (xii) relating to ‘Eligible Borrower’, the following sub-paragraph shall be substituted, namely:—
‘xii. “Eligible borrower” means new or existing micro unit / enterprise falling under any sector covered under PMMY or as defined in the MSMED Act, 2006 (as amended from time to time), who meets eligibility criteria prescribed by the Fund and whose credit requirement does not exceed the specified limit under PMMY. Specified limit of the loan shall be Rs.10 lakh or such other amount as may be decided by the Fund from time to time. Further, Overdraft loan amount of Rs.10,000/- sanctioned under PMJDY accounts shall also be eligible to be covered under Credit guarantee Fund. Eligible borrower would also mean Self Help Groups who meet eligibility criteria prescribed by the Fund and whose loan amount is above Rs.10 lakh and upto Rs.20 lakh.’.
- In the said Scheme, in the notes to the attachment, after the words and letters “credit management by MLIs”, the following words shall be inserted, namely:—
“This payout cap shall, however, not be applicable on the SHG portfolio.”