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

The government has doubled the loan limit under the Pradhan Mantri Mudra Yojana (PMMY) from Rs 10 lakh to Rs 20 lakh, effective immediately. This increase aims to support small businesses and entrepreneurs, particularly those who have successfully repaid previous loans under the ‘Tarun’ category. The new ‘Tarun Plus’ category covers loans above Rs 10 lakh up to Rs 20 lakh. This move, announced in the Union Budget 2024-25, is part of the government’s broader strategy to foster entrepreneurship and provide more funding options for emerging businesses. The Credit Guarantee Fund for Micro Units (CGFMU) will provide guarantee coverage for these loans, reinforcing the government’s commitment to creating a robust entrepreneurial ecosystem. This enhancement is expected to significantly benefit micro and small enterprises by providing them with the necessary financial support to grow and expand their operations.