GUWAHATI: The Central government has raised the loan limit under the Pradhan Mantri Mudra Yojana (PMMY) from ₹10 lakh to ₹20 lakh. This decision was affirmed by the Ministry of Finance on Friday, October 25, following up with the prior announcement made by Finance Minister Nirmala Sitharaman earlier this year in the Union Budget 2024-25.
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To boost entrepreneurship, this decision aims to fulfil the PMMY’s objective of "Funding the Unfunded" by supporting emerging entrepreneurs in their growth and expansion.
The revised loan structure includes a new category, Tarun Plus, which applies to loans above ₹10 lakh and up to ₹20 lakh. This category has been specifically made available to entrepreneurs who have already availed of and repaid loans under the Tarun category, which caps at ₹10 lakh.
The Credit Guarantee Fund for Micro Units (CGFMU) will provide guarantee coverage for PMMY loans up to the new ₹20 lakh limit, offering additional security to lenders.
The move is expected to facilitate easier access to capital for aspiring entrepreneurs, empowering them to expand their businesses and contribute to the nation’s economic growth.
