The Finance Ministry has announced an increase in the loan limit under the Pradhan Mantri Mudra Yojana (PMMY) from ₹10 lakh to ₹20 lakh. This change, effective from the Union Budget 2024-25 announced on July 23, 2024, aims to enhance funding for aspiring entrepreneurs.

PMMY’s primary goal is to “fund the unfunded” and support the growth and expansion of new businesses, the official notification said.

The new category, Tarun Plus, will cater to loans exceeding ₹10 lakh and up to ₹20 lakh.

Eligibility for this category requires entrepreneurs to have previously taken and successfully repaid loans under the existing Tarun category.

Additionally, loans under PMMY up to ₹20 lakh will have guarantee coverage through the Credit Guarantee Fund for Micro Units (CGFMU).

PMMY, launched in 2015, is designed to provide affordable credit to micro and small enterprises, focusing on “funding the unfunded.”

This scheme is designed specifically to offer financial assistance to small business owners and entrepreneurs.