Loan Limit Under Mudra Scheme Increased to ₹20 Lakh

Loan Limit Under Mudra Scheme Increased to ₹20 Lakh

The Central Government has increased the loan limit under the Pradhan Mantri Mudra Yojana (PMMY) from ₹10 lakh to ₹20 lakh to promote entrepreneurship across the country. The Ministry of Finance issued a notification late Thursday night, stating on Friday that this increase aims to enhance the scheme’s outreach and goals.
Finance Minister Nirmala Sitharaman had indicated in the July 2024-25 budget announcement that the loan limit under PMMY would be raised from the current ₹10 lakh to ₹20 lakh. The minister mentioned that this increased Mudra loan limit would be available to entrepreneurs who had previously taken loans under the "Tarun" category and successfully repaid them. As per the notification, a new loan category, "Tarun Plus," has been added to the Mudra scheme. This category will offer loans from ₹10 lakh to ₹20 lakh.
Key Points of the Pradhan Mantri Mudra Yojana (PMMY):
•    A new loan category, "Tarun Plus," has been introduced.
•    The scheme now offers loans up to ₹10 lakh under existing categories, with additional loans up to ₹20 lakh under the new category.
Prime Minister Narendra Modi launched the Pradhan Mantri Mudra Yojana on April 8, 2015, with the objective of providing easy and collateral-free loans up to ₹10 lakh for non-corporate, non-farming small/micro enterprises to support income-generating activities. The scheme currently has three loan categories — Shishu, Kishore, and Tarun, with loan limits as follows:
•    Shishu: Up to ₹50,000
•    Kishore: ₹50,000 to ₹5 lakh
•    Tarun: ₹5 lakh to ₹10 lakh
With the addition of the "Tarun Plus" category, loans up to ₹20 lakh can now be availed.