Prime Minister Mudra loan limit has been increased
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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.
