The central government has increased the loan limit under the Pradhan Mantri Mudra Yojana (PMMY) from ₹10 lakhs to ₹20 lakhs. This decision, announced by Finance Minister Nirmala Sitharaman in the Union Budget for the fiscal year 2024-25, has now been implemented. The Department of Financial Services has confirmed the creation of a new Tarun Plus category under the scheme, which will offer loans up to ₹20 lakhs.
What Is the New Loan Limit Under the Pradhan Mantri Mudra Yojana?
The loan limit under the PMMY has been increased to ₹20 lakhs from the previous limit of ₹10 lakhs. This enhancement aims to provide more significant financial support to small entrepreneurs and help them expand their businesses.
What Is the Tarun Plus Category in Mudra Yojana?
A new Tarun Plus category has been introduced under the Mudra Yojana. This category is specifically designed for entrepreneurs who have already repaid their Tarun category loan. These entrepreneurs can now avail loans up to ₹20 lakhs to further expand or enhance their business ventures.
Why Was the Loan Limit Increased?
The increase in the loan limit is intended to:
- Provide more financial assistance to small and medium enterprises (SMEs).
- Encourage entrepreneurship and support the growth of businesses that have successfully repaid their initial loans.
- Help businesses scale their operations and improve their overall capacity.
How Will the Loan Increase Benefit Entrepreneurs?
The new loan limit will benefit small businesses and startups by giving them more capital to:
- Expand their operations.
- Invest in infrastructure or new technology.
- Improve their workforce and overall productivity.
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