New Delhi: The central government has notified the increase in the loan limit under Pradhan Mantri Mudra Yojana (PMMY) to Rs 20 lakh from Rs 10 lakh.
The move is in line with the announcement made in the Union Budget presented by Finance Minister Nirmala Sitharaman in July this year.
"This enhancement is specifically beneficial to upcoming entrepreneurs facilitating their growth and expansion," Finance Ministry said in a statement on Friday.
As per the notification issued on October 24, 2024, 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 upto Rs 20 lakh will be provided under the Credit Guarantee Fund for Micro Units (CGFMU).
The central government had launched Pradhan Mantri Mudra Yojana (PMMY) for facilitating self-employment by providing collateral free loans to micro/small business enterprises and to individuals to enable them to set up or expand their business activities.