(4) The Union Cabinet, in January2016, approved the creationof Credit GuaranteeFund for MUDRA Units (CGFMU)for guaranteeing loanssanctioned under PradhanMantri Mudra Yojana with effectfrom 8th April, 2015. It isaimed to reduce the credit riskto Banks/NBFCs/MFIs/ otherfinancial intermediaries,who are Member Lending Institutions(MLIs).