Govt Doubles Mudra Loan Cap To Rs 20 Lakh

New Delhi: The government has doubled the loan limit under the Pradhan Mantri Mudra Yojana (PMMY) to Rs20 lakh to promote entrepreneurship in the country.

This increase aspires to further the overall objective of the Mudra Scheme which is funding the unfunded, the Finance Ministry said in a statement on Friday. A notification in this regard was issued on Thursday. As announced by the Finance Minister Nirmala Sitharaman on July 23, 2024, in the Union Budget 2024-25, the limit under the Pradhan Mantri Mudra Yojana (PMMY) has been enhanced from the current Rs10 lakh to Rs20 lakh.

“The limit of Mudra loans will be enhanced to Rs20 lakh from the current Rs10 lakh for those entrepreneurs who have availed and successfully repaid previous loans under the ‘Tarun category’, Sitharaman said while presenting the Budget in the Lok Sabha. This enhancement is specifically beneficial to upcoming entrepreneurs facilitating their growth and expansion. The move is in alignment with the government’s commitment in fostering a robust entrepreneurial ecosystem.