Centre doubles loan limit under Pradhan Mantri Mudra Yojna; aims to boost budding entrepreneurs
PTC News Desk: The central government in a bid to boost budding entrepreneurs, has doubled the loan limit under the Pradhan Mantri Mudra Yojana (PMMY) from Rs 10 lakh to Rs 20 lakh under ‘Tarun Plus’ category to promote entrepreneurship in the country.
“The increase aims to further the objective of the Mudra Scheme, which is to fund the unfunded. This enhancement is specifically beneficial to emerging entrepreneurs, facilitating their growth and expansion. The move aligns with the government’s commitment to fostering a robust entrepreneurial ecosystem,” said the Finance Ministry in a press statement.
According to the notification issued, the new category 'Tarun Plus' is for loans above Rs 10 lakh and beneficiaries can sought up to Rs 20 lakh who have availed and successfully repaid previous loans under the Tarun category.
Earler in July 2024, Finance Minister Nirmala Sitaraman in her Union Budget speech announced the same, saying "The limit of Mudra loans will be enhanced to Rs 20 lakh from the current Rs 10 lakh for those entrepreneurs who have availed and successfully repaid previous loans under the ‘Tarun category’. ”
The scheme was launched in 2015 by Prime Minister Narendra Modi with an objective to facilitate easy, collateral-free micro-credit of up to ₹10 lakh to non-corporate, non-farm small and micro-entrepreneurs for income-generating activities.
Under the existing scheme, banks provide collateral-free loans under three categories: Shishu (up to Rs 50,000), Kishore (between Rs 50,000 and Rs 5 lakh), and Tarun (up to Rs 10 lakh).
- PTC NEWS
