The Union government has doubled the loan limit of Pradhan Mantri Mudra Yojna from Rs 10 lakhs to Rs 20 lakhs. In an announcement on October 25, the Finance Ministry stated that this move is designed to foster an entrepreneurial culture and support job creation. An announcement in this regard was made by FM Nirmala Sitharaman earlier during the budget presentation in July.
As per the notification issued in this regard, the new category of Tarun Plus is for Loans above Rs. 10 lakh and up to 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 up to Rs. 20 lakh will be provided under the Credit Guarantee Fund for Micro Units (CGFMU).
The complete notification regarding the Mudra Yoja can be read here.
