In a major update, the Indian government has increased the loan limit under the Pradhan Mantri Mudra Yojana (PMMY) from ₹10 lakh to ₹20 lakh. This change aims to support small businesses by giving them access to larger loans for growth and expansion.
What is PM Mudra Yojana?
The Pradhan Mantri Mudra Yojana (PMMY) was introduced in 2015 to help small businesses and startups. The program offers loans to micro and small enterprises, making it easier for individuals without collateral to access funds. These loans are available through banks, regional rural banks, small finance banks, and microfinance institutions.
Key Highlights of the New Loan Limit
- Higher Loan Amount: Small businesses can now borrow up to ₹20 lakh, doubling the previous limit.
- More Opportunities for Businesses: With a higher loan limit, more micro and small enterprises can get the funds they need.
- Job Creation: The new limit is expected to generate more jobs by helping businesses expand and hire.
Loan Categories in PM Mudra Yojana
There are three types of loans under PMMY, each serving different business needs:
- Shishu: Up to ₹50,000 for new businesses.
- Kishore: From ₹50,001 to ₹5 lakh for businesses looking to grow.
- Tarun: Now raised to ₹20 lakh for well-established businesses aiming to expand.
How to Apply for a Mudra Loan
To apply for a Mudra loan, visit any participating bank or financial institution with a business plan and basic documents. With the new limit, small business owners now have better access to funds for business expansion.
Why This Matters
Increasing the loan limit under PMMY is expected to support more entrepreneurs, drive economic growth, and create more self-employment opportunities across India.
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