Finance Minister Nirmala Sitharaman while presenting the Union Budget 2024-25 on Tuesday, July 23, announced that the loan limit under the Pradhan Mantri MUDRA Yojana (PMMY) will be increased from the prevailing Rs 10 Lakh to Rs 20 Lakh.
She stated that the increase in the limits of loans will apply to entrepreneurs under the TARUN category who have applied, availed, and repaid MUDRA loans to date.
The government piloted the PMMY scheme on April 8, 2015, to offer loans worth up to Rs 10 lakh to non-corporate, non-farm small & micro-enterprises. The MUDRA loans under PMMY are classified into three categories: loans in the range of Rs 5-10 lakh fall in the TARUN category, while the other two categories are: Shishu loans with an upper limit of Rs 50,000 and Kishor loans that fall in the Rs 50,000-5 Lakh range.
These loans are sourced from commercial banks, regional rural banks, small finance banks, microfinance institutions, and non-banking financial corporations (NBFC).
