Loan Limit Under PMMY Doubled to Rs 20 Lakh for Small Businesses

Last updated: 26 October 2024

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The Pradhan Mantri Mudra Yojana (PMMY) has seen its loan limit significantly increased from £10 lakh to £20 lakh. Announced in the Union Budget 2024-25, this move aims to support more small businesses and upcoming entrepreneurs, aligning with the government's goal of fostering a strong entrepreneurial ecosystem. A new 'Tarun Plus' category for loans between £10 lakh and £20 lakh has been introduced for eligible entrepreneurs, with guarantee coverage provided by the Credit Guarantee Fund for Micro Units (CGFMU).

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

Mudra Loan Limit Doubled to £20 Lakh for Small Businesses

As announced by the Finance Minister on 23rd July, 2024 in the Union Budget 2024-25, the limit of Mudra loans under the Pradhan Mantri Mudra Yojana (PMMY) has been enhanced from current Rs. 10 lakh to Rs. 20 lakh. This increase aspires to further the overall objective of the Mudra Scheme which is Funding the Unfunded. This enhancement is specifically beneficial to upcoming entrepreneurs facilitating their growth and expansion. The move is in alignment with the Governmment's commitment in fostering a robust entrepreneurial ecosystem.

As per the notification issued in this regard, 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).

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FAQ :

The loan limit under PMMY has been increased to £20 lakh, up from the previous limit of £10 lakh.

The increase was announced by the Finance Minister on 23rd July 2024, as part of the Union Budget 2024-25.

The enhancement aims to further the Mudra Scheme's objective of 'Funding the Unfunded' and support the growth and expansion of upcoming entrepreneurs.

Yes, a new category called 'Tarun Plus' has been introduced for loans above £10 lakh and up to £20 lakh.

Entrepreneurs who have successfully availed and repaid previous loans under the 'Tarun' category are eligible for the 'Tarun Plus' category.

Guarantee coverage for PMMY loans up to £20 lakh will be provided under the Credit Guarantee Fund for Micro Units (CGFMU).

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