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of <h1>Indian Government's CGFMU Guarantees Loans for Micro Units under PMMY, Effective April 2015, Managed by NCGTC.</h1> The Credit Guarantee Fund for Micro Units (CGFMU) was established by the Indian government to provide guarantees for loans under the Pradhan Mantri Mudra Yojana (PMMY). Effective from April 8, 2015, it aims to guarantee loans up to a specified limit for micro units through banks, NBFCs, and other financial intermediaries. The scheme defines terms like 'micro loan,' 'portfolio,' and 'amount in default' and outlines eligibility criteria for borrowers and lending institutions. It includes a fee structure for guarantee coverage and specifies conditions for claim invocation and recovery. The scheme is managed by the National Credit Guarantee Trustee Company (NCGTC).
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