The limit of Mudra loans under the Pradhan Mantri Mudra Yojana has been enhanced from the current Rs 10 lakh to Rs 20 lakh, as announced by Finance Minister Nirmala Sitharaman in the Union Budget in July.
This enhancement is specifically beneficial to upcoming entrepreneurs, facilitating their growth and expansion, a press release by the finance ministry on Friday stated.
As per the notification issued, a new category, named 'Tarun Plus', is for loans above Rs 10 lakh and up to Rs 20 lakh and would be available to the entrepreneurs who have availed and successfully repaid previous loans. The guarantee coverage of PMMY loans up to Rs 20 lakh will be provided under the Credit Guarantee Fund for Micro Units.
Current limits:
Shishu: covering loans up to Rs 50,000/-
Kishor: covering loans above Rs 50,000/- and up to Rs 5 lakh
Tarun: covering loans above Rs 5 lakh and up to Rs 10 lakh
Tarun Plus: covering loans above Rs 10 lakh and up to Rs 20 lakh for those entrepreneurs who have availed and successfully repaid previous loans under the ‘Tarun' category.
Overdraft facility of Rs 10,000/- sanctioned under PMJDY accounts shall also be eligible to be covered under Credit Guarantee Fund, the notification stated. Eligible borrowers would also mean Self Help Groups who meet eligibility criteria prescribed by the Fund and whose loan amount is above Rs.10 lakh and up to Rs 20 lakh, it added.
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