AI SummaryPradhan Mantri Mudra Yojana (PMMY) offers collateral-free loans to small and micro businesses in India. The loan limit under the scheme has been raised from ₹10 lakh to ₹20 lakh, giving small entrepreneurs more room to grow their business.
The Finance Minister announced this increase in the Union Budget 2024-25, and the new limit came into effect on 24 October 2024. A new loan category called Tarun Plus was added for entrepreneurs who have already taken and successfully repaid a loan under the Tarun category.
Key Features of PM Mudra Yojana Loan Limit
Here are the main points of the revised loan limit under PMMY.
- Tarun Plus category: Loans from ₹10 lakh to ₹20 lakh are now available for eligible entrepreneurs who have repaid their earlier Tarun loans.
- Guarantee coverage: These bigger loans are covered under the Credit Guarantee Fund for Micro Units (CGFMU), which gives a safety net to the lending institutions.
- Eligibility: The Tarun Plus category is reserved for borrowers who have successfully repaid their earlier loans under the Tarun category.
- Effective date: The new limit has been in force since 24 October 2024.
The higher limit also helps support Self-Help Groups (SHGs) and micro-entrepreneurs across different sectors. The government has also said that the overdraft facility of ₹10,000 under PM Jan Dhan Yojana (PMJDY) is covered under the CGFMU guarantee.
PMMY Loan Limit Official Notification PDF
The official notification PDF about the increase in the Mudra loan limit can be downloaded from the official website or through the direct link below.
PMMY Loan Categories at a Glance
| Category | Loan Amount | Target Beneficiaries |
|---|---|---|
| Shishu | Up to ₹50,000 | Early-stage micro-enterprises |
| Kishor | ₹50,000 to ₹5 lakh | Growing micro-units |
| Tarun | ₹5 lakh to ₹10 lakh | Expanding businesses |
| Tarun Plus | ₹10 lakh to ₹20 lakh | Established entrepreneurs with loan history |
This revised structure supports small business owners and encourages a stronger entrepreneurial ecosystem. The higher loan limit also matches other government efforts to help micro, small and medium enterprises (MSMEs) grow.
How to Apply for a Mudra Loan
Mudra loans are given by banks, NBFCs and other lending institutions. Borrowers can apply online through the Udyamimitra portal or by visiting the nearest bank branch. The official MUDRA website also carries the loan details and scheme rules.
Additional Details
According to the official notification, the upper limit of ₹20 lakh is the current loan cap under PMMY, and it can change as per future policy decisions. Entrepreneurs under the Joint Liability Group (JLG) framework, both individually and collectively, are also eligible for these loans, which widens the reach of financial inclusion.
For those looking to apply under the Tarun Plus category, consult the local bank or visit the official MUDRA website to check eligibility and application details.