The Pradhan Mantri Mudra Yojana (PMMY) now allows loans up to Rs 20 lakh, doubling the previous limit of Rs 10 lakh. Finance Minister Nirmala Sitharaman made this announcement in the annual budget presentation.
The notification has now been released by the Finance Ministry. Under the Tarun Plus category, individuals who have previously borrowed and fully repaid a loan under the Tarun category can now receive a loan of up to Rs 20 lakh. The Central Government initiated the Pradhan Mantri Mudra Yojana on April 8, 2015, with the aim of facilitating access to loans for individuals to kickstart their own businesses or establish small enterprises. This plan is designed for small businesses that are not part of corporate entities. This loan is available to small manufacturing units, service sector units, shopkeepers, fruit and vegetable sellers, truck operators, food service units, retail shopkeepers, machine operators, food processors, and others.
Previously, loans were provided without requiring any collateral under three distinct categories – Shishu, Kishore, and Tarun. Banks and financial institutions provide loans ranging from Rs 50,000 for infants, Rs 50,000 to Rs 5 lakh for juveniles, and Rs 5 to Rs 10 lakh for Tarun category. Loans in the Tarun Plus category will now be offered in the range of 10 to 20 lakh rupees.
All categories’ options can be located on the official website www.mudra.org.in.
Choose the loan that you prefer by clicking on it.
You will receive a hyperlink to the application form, make sure to click on it.
Get the PDF of the application form and print it out.
Complete the form with caution and include all essential documents.
Following this, hand in this form at the closest branch of a bank or microfinance institution.