New Delhi, October 25: The Central Government has increased the maximum loan limit under the Prime Minister Mudra Yojana (PMMY) from Rs 10 lakh to Rs 20 lakh. Finance Minister Nirmala Sitharaman had announced the enhancement of the Mudra loan limit in the 2024-25 Union Budget.
The Ministry of Finance issued a notification on Friday, confirming that the existing loan cap under PMMY has been doubled, aligning with the Finance Minister’s announcement from July 23, 2024. This increase aims to support the PMMY’s objective of promoting micro-enterprise, facilitating growth and expansion for emerging entrepreneurs. The ministry added that the initiative aligns with the government’s commitment to fostering a robust entrepreneurial ecosystem.
Under this revision, a new category called ‘Tarun Plus’ has been introduced for loans exceeding Rs 10 lakh and up to Rs 20 lakh. This facility will be available to entrepreneurs who have previously availed and repaid loans under the ‘Tarun’ category. Loans under PMMY up to Rs 20 lakh will be backed by guarantee coverage through the Credit Guarantee Fund for Micro Units.
Launched by Prime Minister Narendra Modi on April 8, 2015, PMMY aims to provide easy, collateral-free microcredit to non-corporate, non-agricultural small and micro-entrepreneurs for income-generating activities, with an initial cap of Rs 10 lakh, which has now been raised to Rs 20 lakh.
