CGFMU
Credit Guarantee Fund for Micro Units (MUDRA)
The Credit Guarantee Fund for Micro Units backs loans under the MUDRA scheme - enabling collateral-free credit for micro-entrepreneurs who have graduated from skill programs and are launching their first livelihood venture.
Backed by
MUDRA Ltd (a wholly-owned subsidiary of SIDBI)
Guarantee coverage
Up to 75%
Max loan amount
₹10,00,000
Guarantee fee
0.50% – 2.00% p.a. on outstanding guarantee amount
Official source: NCGTC - CGFMU official page
How CGFMU works.
01
Graduate
Complete a Lakshya-linked skill program or demonstrate skill certification.
02
Plan
Submit a simple business outline - shop, service, or micro-franchise.
03
Route
Lakshya matches you with a MUDRA-empanelled lender.
04
Guarantee
CGFMU guarantee activated - lender gets default cover.
05
Launch
Funds disbursed against setup invoices. Start your venture.
Why CGFMU matters.
- Collateral-free loans for micro and small enterprises
- Three tiers: Shishu (up to ₹50K), Kishor (₹50K–₹5L), Tarun (₹5L–₹10L)
- Enables first-generation entrepreneurs to access formal credit
- Covers manufacturing, services, trading, and allied activities
- Women entrepreneurs get priority processing and better terms
- Lakshya routes post-skill graduates directly into MUDRA-eligible lending
Who qualifies.
- 01Micro/small enterprise or individual starting a new livelihood activity
- 02Business must be a non-farm, income-generating enterprise
- 03Existing enterprises with loan requirement up to ₹10 lakh
- 04Priority for SC/ST/OBC, women entrepreneurs, and skill-certified youth
Answered in plain language.
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