Loan limit under Pradhan Mantri Mudra Yojana (PMMY) increased to Rs.20 lakh from the current Rs.10 lakh

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Pradhan Mantri Mudra Yojana (PMMY) loan limit increased to 20 lakh

It is in sync with the announcement made by the Finance Minister in the Union Budget 2024-25.

It aims to achieve the objective of Funding the Unfunded and facilitate upcoming entrepreneurs with a robust entrepreneurial ecosystem.

A new ‘Tarun Plus’ category has been created for loans above Rs. 10 lakh and upto Rs. 20 lakh .
- Eligibility: Loans under Tarun Plus are available to entrepreneurs who have availed and successfully repaid previous loans under Tarun category.
- Guarantee Coverage: for loans upto Rs. 20 lakh will be provided under Credit Guarantee Fund for Micro Units (CGFMU).
  - The Fund (at its discretion) may approve a list of Institutions or their schemes, for which the guarantee cover will be available/unavailable
  - CGFMU was set up in 2016 under National Credit Guarantee Trustee Company Ltd., a wholly-owned company of Government of India.

Objective: facilitate easy collateral-free micro credit of up to ₹10 lakh
Eligibility : Any Indian citizen who has a business plan for non-corporate, non-farm income generating activity such as manufacturing, processing, trading or service sector.
MUDRA ( Micro Units Development & Refinance Agency Ltd.) provides funding to financial institutions like Banks, Non-Banking Financial Institutions (NBFC) and Micro Finance Institutions (MFI).
Various types of loan options available:
- Shishu: Covers loans upto 50,000.
- Kishor: Covers loans above 50,000 and upto 5 lakh.
- Tarun: Covers loans above 5 lakh and upto 10 lakh.