PHDCCI proposes MUDRA loan limits up to ₹20 lakh

PHDCCI has proposed raising loan limits under Pradhan Mantri MUDRA Yojana (PMMY) in its pre-Budget recommendations for 2027-28: ₹1 lakh for Shishu, ₹10 lakh for Kishore and ₹20 lakh for Tarun and Tarun Plus.

It has also proposed extending the overdue period for classifying MSME loans as non-performing assets from 90 days to 180 days.

For MSME credit, PHDCCI has sought direct government equity through the Fund of Funds Scheme, with allocations for start-up seed capital and SME IPOs. It also wants stronger implementation of the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), stricter bank compliance and a centralised portal to track loan applications and rejection reasons.