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In a key policy shift aimed at bolstering the nation's entrepreneurial landscape, the Indian government has doubled the Mudra loan limit to Rs 20 lakh. This move, part of the 2024-25 Union Budget, was officially announced via a notification on Thursday, underscoring the government's focus on 'Funding the Unfunded'.
The enhanced loan ceiling is expected to significantly aid emerging entrepreneurs, providing them with greater financial flexibility for growth and expansion. According to the government, this aligns with their commitment to foster a robust entrepreneurial ecosystem. The newly introduced 'Tarun Plus' category covers loans exceeding Rs 10 lakh, up to Rs 20 lakh, specifically targeted at entrepreneurs who have successfully repaid previous loans.
Guarantee coverage for these loans will be facilitated under the Credit Guarantee Fund for Micro Units (CGFMU). Initiated by Prime Minister Narendra Modi in 2015, the Pradhan Mantri Mudra Yojana (PMMY) extends support to non-corporate and non-farm small and micro enterprises, with financial support channeled through banks and other intermediaries, to advance financial inclusion across manufacturing, trading, and service sectors.
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