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The limit of Mudra loans has been enhanced to further the overall objective of the Mudra Scheme which is ‘Funding the Unfunded’, says the finance ministry.
The Pradhan Mantri Mudra Yojana is a scheme launched by Prime Minister Narendra Modi on April 8, 2015 for providing loans up to 10 lakh to micro and small enterprises.
The government has increased the loan limit under the Pradhan Mantri Mudra Yojana (PMMY) from Rs 10 lakh to Rs 20 lakh, according to an official release on Friday. The enhanced limit for Mudra loans was announced by Finance Minister Nirmala Sitharman in the Union Budget 2024-25 on July 23 this year.
“The limit of Mudra loans under the Pradhan Mantri Mudra Yojana (PMMY) has been enhanced from current Rs 10 lakh to Rs 20 lakh. This increase aspires to further the overall objective of the Mudra Scheme which is ‘Funding the Unfunded’,” the finance ministry said in the statement.
This enhancement is specifically beneficial to upcoming entrepreneurs facilitating their growth and expansion. The move is in alignment with the governmment’s commitment in fostering a robust entrepreneurial ecosystem, it added.
As per the notification issued in this regard, the new category of Tarun Plus is for Loans above Rs 10 lakh and up to Rs 20 lakh and would be available to the entrepreneurs who have availed and successfully repaid previous loans under the Tarun category.
“The guarantee coverage of PMMY loans up to Rs 20 lakh will be provided under the Credit Guarantee Fund for Micro Units (CGFMU),” it added.
Who is Eligible for Mudra Loan?
Mudra loan is a government scheme in India that provides financial support to micro and small enterprises for business development. Eligibility includes non-corporate small businesses, micro-enterprises, and individuals in manufacturing, trading, services, and agriculture-related sectors.
Pradhan Mantri MUDRA Yojana (PMMY) is a scheme launched by Prime Minister Narendra Modi on April 8, 2015 for providing loans up to 10 lakh to micro and small enterprises.
Loans under the PM mudra loan scheme are available to non-farm micro or small enterprises engaged in income generation through manufacturing, trading and services. Eligibility includes non-corporate small businesses, micro-enterprises, and individuals in manufacturing, trading, services, and agriculture-related sectors.
