Loan Limit Under Pradhan Mantri Mudra Yojana Doubled to Boost Entrepreneurs
In a significant boost to small entrepreneurs, the Pradhan Mantri Mudra Yojana (PMMY) loan limit has been raised from Rs.10 lakh to Rs.20 lakh. Finance Minister announced this increase on July 23, 2024, as part of the Union Budget 2024-25, aiming to enhance access to funding for emerging businesses.
This expansion under the Mudra Scheme reflects the government’s focus on “Funding the Unfunded,” providing substantial support to upcoming entrepreneurs. The enhanced loan ceiling is expected to enable business growth and job creation, aligning with India’s entrepreneurial objectives.
A new category, “Tarun Plus,” has been introduced for loans exceeding Rs.10 lakh and up to Rs.20 lakh. Eligible entrepreneurs under this category must have previously availed and repaid loans in the Tarun segment. Loans in this bracket will have coverage under the Credit Guarantee Fund for Micro Units (CGFMU), ensuring added financial security for beneficiaries.
This enhancement in loan capacity demonstrates the government’s ongoing commitment to building a strong entrepreneurial environment in India, opening new avenues for small business growth.
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