NEWS – Government Doubles Loan Limit Under Mudra Yojana to ₹20 Lakh

NEW CATEGORY : TARUN PLUS

• Loan Range: For amounts above ₹10 lakh and up to ₹20 lakh.
• Eligibility: Available for entrepreneurs who have availed and successfully repaid loans under the Tarun category.

OBJECTIVES OF THE ENHANCEMENT

• Promote Entrepreneurship:
  • Aims to support upcoming entrepreneurs.
  • Facilitates growth and expansion of small businesses.
• Alignment with Government Goals:
  • Part of the commitment to foster a robust entrepreneurial ecosystem.
  • Supports the overall objective of the Mudra Scheme: funding the unfunded.

LOAN GUARANTEE COVERAGE

• Credit Guarantee Fund for Micro Units (CGFMU):
  • PMMY loans up to ₹20 lakh will have guarantee coverage.

PM MUDRA

• Launched in April, 2015. The scheme’s objective is to refinance collateral-free loans given by the lenders to small borrowers.
• Banks and MFIs can draw refinance under the MUDRA Scheme after becoming member-lending institutions of MUDRA.
• Mudra Loans are available for non-agricultural activities and activities allied to agriculture such as Dairy, Poultry, Bee Keeping etc, are also covered.
• Mudra’s unique features include a Mudra Card which permits access to Working Capital through ATMs and Card Machines.