The guarantee fee will be 0.50% annually, with no additional risk premium, while the guarantee cover will be increased to 85% across loan sizes.Borrowers will also receive support through the loan process and business cycle.Meanwhile, the PMMY Credit Guarantee Fund is expected to support Mudra loans worth ₹12.60 lakh crore. It will cover PMMY loans of up to ₹20 lakh, overdrafts of up to ₹10,000 under the Pradhan Mantri Jan Dhan Yojana and self-help group loans of ₹10-20 lakh, all without collateral.Also Read I ₹3,230 crore for Yuge Yugeen Bharat National Museum">Union Cabinet approves ₹3,230 crore for Yuge Yugeen Bharat National MuseumThe annual guarantee fee will be reduced from 1% to 0.75%, while the government plans to strengthen the claim process for lenders to improve credit flow to micro entrepreneurs.CabinetGet Latest News, breaking headlines, and top India News, and today real-time updates from across the nation.
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