Mudra Yojana loan limit doubled to Rs 20 lakh

To give a fillip to entrepreneurship in the country, the Centre has doubled the loan limit under the Pradhan Mantri Mudra Yojana (PMMY) to Rs 20 lakh.

This enhancement isespecially beneficial to upcoming entrepreneurs facilitating their growth and expansion. The move was in line with the governmment’s commitment to fostering a robust entrepreneurial ecosystem, the Finance Ministry said in a press release.

On July 23, Finance Minister Sitharaman had said the limit of Mudra loans would be enhanced to Rs 20 lakh from the current Rs 10 lakh for those entrepreneurs who had availed and successfully repaid previous loans under the ‘Tarun’ category.

As per the notification issued, the new category of ‘Tarun Plus’ is for loans above Rs 10 lakh and upto Rs 20 lakh and would be available to the entrepreneurs who have availed and successfully repaid previous loans under the ‘Tarun’ category. The guarantee coverage of PMMY loans up to Rs 20 lakh will be provided under the Credit Guarantee Fund for Micro Units (CGFMU).

PMMY was launched in 2015 to facilitate easy collateral-free micro-credit of up to Rs 10 lakh to non-corporate, non-farm small and micro-entrepreneurs for income-generation.