Boosting Entrepreneurship: Mudra Loan Limit Doubled

The government has increased the Pradhan Mantri Mudra Yojana loan limit to Rs 20 lakh to encourage entrepreneurship. This change is aimed at funding the unfunded, with particular benefits for entrepreneurs in the 'Tarun' category who have successfully repaid past loans. The initiative aligns with fostering a robust entrepreneurial ecosystem.

The government has officially expanded the loan limit under the Pradhan Mantri Mudra Yojana (PMMY) to Rs 20 lakh, effectively doubling the previous cap as part of its strategy to bolster entrepreneurship across the country.

This significant policy amendment, effective from July 23, 2024, was executed following Finance Minister Nirmala Sitharaman's announcement during the Union Budget 2024-25 presentation in the Lok Sabha. The raised limit aims at assisting entrepreneurs who have a credible track record of repaying previous Takuna category loans.

The notification also introduced a new 'Tarun Plus' category for loans over Rs 10 lakh, which is assured under the Credit Guarantee Fund for Micro Units (CGFMU). Since its launch in April 2015, PMMY has been providing collateral-free micro-credit to small-scale entrepreneurs.

(With inputs from agencies.)