New Delhi: In a major boost to aspiring entrepreneurs, the Union Government has announced an increase in the loan limit under the Pradhan Mantri Mudra Yojana (PMMY).
Under the scheme, individuals looking to start or expand their businesses can now avail of collateral-free loans up to ₹20 lakh. This move, which doubles the previous loan limit of ₹10 lakh, is aimed at encouraging young entrepreneurs and business owners to take the leap without the burden of securing loans against assets.
The Union Finance Minister, Nirmala Sitharaman, in her FY2024-25 budget speech, emphasised that this increase will provide greater financial support for small and medium businesses, enabling them to grow and create employment opportunities. The PMMY, launched by the Modi government in 2015, is a key initiative designed to help individuals who are keen on starting their own business, regardless of their educational background.
The scheme is divided into four categories based on the amount of loan required:
Shishu (up to ₹50,000),
Kishore (₹50,000 to ₹5 lakh),
Tarun (₹5 lakh to ₹10 lakh), and
Tarun Plus (₹10 lakh to ₹20 lakh).
Applicants must meet basic requirements like an Aadhaar card, PAN card, proof of income, and a business plan. With no formal educational qualifications required, even individuals with an 8th-grade education are eligible to apply for loans. The process is simple, with the option to apply both online at mudra.org.in and at banks across India.
This initiative is expected to significantly boost India’s entrepreneurial ecosystem, facilitating business expansion and fostering grassroots economic growth.