- The loan limit under the Prime Minister Mudra loan scheme has been increased from 10 lakhs rupees to 20 lakhs rupees.
- Finance Minister Nirmala Sitharaman has announced the decision as part of the Union Budget for 2024-2025 in July.
- The Department of Financial Services (DFS) said that the new Tarun Plus category has been created under the Scheme.
- For entrepreneurs who have paid back their prior Tarun loans, this category will provide loans between 10 lakh and 20 lakh rupees.
- The Credit Guarantee Fund for Micro Units (CGFMU) would now cover loans up to 20 lakh rupees, DFS stated, making it easier for small firms to obtain credit.
- Mudra loans under the Pradhan Mantri Mudra Yojana (PMMY) offer up to ₹20 lakhs in loans without collateral or third-party guarantees.
- Under PMMY, the schematic interventions have been named “Shishu,” “Kishor,” “Tarun,” and, more recently, “Tarun Plus.”
- These indicate the beneficiary micro unit’s or entrepreneur’s stage of growth and development as well as their financial requirements.
- They also serve as a reference point for the next phase of development.
