New Delhi: The governemnt has doubled the limit for the Pradhan Mantri Mudra Yojana (PMMY) to encourage entrepreneurship in India. According to reports, entrepreneurs who have successfully repaid previous loans under the 'Tarun category', will be eligible to avail the benefit. The limit has been increased from Rs 10 lakh to Rs 20 lakh Under the PMMY scheme. The finance ministry stated on Friday that this rise aims to advance the main goal of the Mudra Scheme, which is to provide funding to those who lack access to financial resources.
While presenting the Budget in the Lok Sabha on July 23, 2024, in the Union Budget 2024-25, finance minister Nirmala Sitharaman mentioned this improvement is particularly advantageous for aspiring entrepreneurs by aiding in their development and expansion. The action supports the government's dedication to promoting a strong environment for entrepreneurs.
Loan Limit Under PMMY Scheme Increased To Rs 20 lakh
According to a notice, the Tarun Plus category is for loans ranging from Rs 10 lakh to Rs 20 lakh and is open to entrepreneurs who have paid off their previous Tarun category loans. The Credit Guarantee Fund for Micro Units (CGFMU) will ensure coverage for PMMY loans up to Rs 20 lakh. The Prime Minister Narendra Modi launched PMMY on April 8, 2015, aiming to provide hassle-free micro-credit up to Rs 10 lakh to small and micro-entrepreneurs for income-generating purposes, without the need for collateral.
PMMY loans are offered by Member Lending Institutions (MLIs) such as banks, Non-banking Financial Companies (NBFCs), Microfinance Institutions (MFIs), and other financial intermediaries. Under the current system, banks offer loans without requiring collateral.
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