Under the Pradhan Mantri Mudra Yojana (PMMY), the government has increased the loan limit to provide financial support to small and medium entrepreneurs (SMEs) to grow their businesses. Earlier, when the maximum loan under this scheme was up to Rs 10 lakh, now this limit has been increased to Rs 20 lakh. Finance Minister Nirmala Sitharaman announced this change while presenting Budget 2024-25, which is expected to help more entrepreneurs take advantage of this scheme and realize their business plans.

This scheme is especially for those individuals who want to set up non-agricultural and non-corporate small and micro enterprises or expand already operating enterprises. Under PMMY, loans are provided to small businessmen in three categories: Shishu, Kishor, and Tarun. Under the 'Shishu' category, loans up to Rs 50,000 are given, in the 'Kishore' category loans from Rs 50,000 to Rs 5 lakh, and in the 'Tarun' category loans from Rs 5 lakh to Rs 10 lakh are given. Now a new category has also been added to it. This category is Tarun Plus. In this, loans up to Rs 20 lakh are given.

Who will come to Tarun Plus

The Tarun Plus category has been created for those entrepreneurs who have already taken a loan under this scheme and repaid it on time. Only those eligible applicants are given a collateral-free loan of up to Rs 20 lakh in this category.

Where to apply

To avail of the benefits of this scheme, interested persons can apply online by visiting the portal www.udyamimitra.in. Apart from this, any applicant can apply offline by visiting the branch of the nearest bank, NBFC (non-banking financial companies), or MFI (microfinance institute). The move to increase the loan limit under the Mudra scheme is an important part of the government's economic reform program. This will give a boost to those entrepreneurs who cannot make big investments but want to make their mark by working at a small level.

What is the importance of the scheme?

The Finance Ministry said in its statement that this scheme aims to make entrepreneurs self-reliant and meet their financial needs. The loan in this scheme is collateral-free, which reduces the financial burden on small businessmen. The aim of the Mudra scheme is not only to support businesses but also to contribute to employment generation. Prime Minister Narendra Modi launched this scheme on 8 April 2015, in which emphasis was laid on economically empowering the youth and first-generation entrepreneurs of the country.