Government Doubles Mudra Loan Limit to Rs 20 Lakh for Entrepreneurs
The Indian government has announced an increase in the limit of Mudra loans under the Pradhan Mantri Mudra Yojana (PMMY) from Rs 10 lakh to Rs 20 lakh, as per the Union Budget for 2024-25. This change aims to support new entrepreneurs by providing more funds for their growth and expansion. The government stated that this move aligns with its commitment to fostering a strong entrepreneurial ecosystem.
New Tarun Plus Category
A new category called Tarun Plus has been introduced for loans above Rs 10 lakh and up to Rs 20 lakh. This category is available to entrepreneurs who have previously availed and successfully repaid loans under the Tarun category. The Credit Guarantee Fund for Micro Units (CGFMU) will provide guarantee coverage for PMMY loans up to Rs 20 lakh.
About Pradhan Mantri Mudra Yojana (PMMY)
Launched on April 8, 2015, by the Hon’ble Prime Minister, PMMY provides loans to non-corporate, non-farm small/micro enterprises. These loans are offered by Member Lending Institutions (MLIs) such as Banks, Non-Banking Financial Companies (NBFCs), Micro-Finance Institutions (MFIs), and other financial intermediaries. The scheme supports financial inclusion through three pillars: Banking the Unbanked, Securing the Unsecured, and Funding the Unfunded. PMMY loans cater to both term loan and working capital needs for income-generating activities in various sectors, including manufacturing, trading, and services, as well as agriculture-related activities like poultry, dairy, and beekeeping.
Doubts Revealed
Mudra Loan -: Mudra Loan is a type of loan given by the Indian government to help small businesses and entrepreneurs get money to start or grow their businesses.
Pradhan Mantri Mudra Yojana (PMMY) -: PMMY is a scheme started by the Indian government in 2015 to provide financial help to small businesses and entrepreneurs through loans.
Union Budget -: The Union Budget is a yearly plan by the Indian government that explains how it will earn and spend money for the coming year.
Entrepreneurs -: Entrepreneurs are people who start and run their own businesses, often taking risks to make their ideas successful.
Tarun Plus category -: Tarun Plus is a new category under the Mudra Loan scheme for loans above Rs 10 lakh, meant for those who have already paid back their previous loans.
Financial inclusion -: Financial inclusion means making sure everyone has access to useful and affordable financial services, like banking and loans, especially for those who are usually left out.