Mudra loan limit doubled to Rs 20 lakh in line with Budget announcement
Oct 25, 2024
New Delhi [India], October 25 : As announced in the Union Budget for 2024-25 in July, the limit of Mudra loans under the Pradhan Mantri Mudra Yojana (PMMY) has been enhanced from the current Rs 10 lakh to Rs 20 lakh.
The government has to this effect put out an official notification late on Thursday.
This increase aspires to further the overall objective of the Mudra Scheme which is Funding the Unfunded.
This enhancement is specifically beneficial to upcoming entrepreneurs facilitating their growth and expansion.
"The move is in alignment with the government's commitment in fostering a robust entrepreneurial ecosystem," the government said.
As per the notification issued in this regard, the new category of Tarun Plus is for loans above Rs 10 lakh and upto 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 upto Rs 20 lakh will be provided under the Credit Guarantee Fund for Micro Units (CGFMU).
Pradhan Mantri MUDRA Yojana (PMMY) is a scheme launched by the Hon'ble Prime Minister on April 8, 2015, for providing loans to non-corporate, non-farm small/micro enterprises. These loans are classified as MUDRA loans under PMMY.
The loans under PMMY are provided by Member Lending Institutions (MLIs), i.e., Banks, Non-Banking Financial Companies (NBFCs), Micro-Finance Institutions (MFIs) and other financial intermediaries.
The implementation of the financial inclusion programme in the country is based on three pillars, Banking the Unbanked, Securing the Unsecured, and Funding the Unfunded.
Loans under PMMY are provided to meet both term loan and working capital components of financing for income-generating activities in manufacturing, trading and service sectors, including activities allied to agriculture such as poultry, dairy, beekeeping, etc.
