Mudra loan limit raised to ₹20 lakh with new 'Tarun Plus' category
On 25 October 2024, in India, the Ministry of Finance said the loan limit under the Pradhan Mantri Mudra Yojana had been raised from ₹10 lakh to ₹20 lakh, with a new 'Tarun Plus' category, as announced in the Union Budget 2024-25.
Summary
On 25 October 2024, in India, the Ministry of Finance said the limit of Mudra loans under the Pradhan Mantri Mudra Yojana (PMMY) had been enhanced from ₹10 lakh to ₹20 lakh, as announced by the Finance Minister in the Union Budget 2024-25 on 23 July 2024. As per the notification, the new 'Tarun Plus' category covers loans above ₹10 lakh and up to ₹20 lakh for entrepreneurs who have availed and successfully repaid previous loans under the Tarun category. Guarantee coverage for PMMY loans up to ₹20 lakh will be provided under the Credit Guarantee Fund for Micro Units (CGFMU).
Key facts
- Date
- 25 Oct 2024
- Scheme
- Pradhan Mantri Mudra Yojana
- Old limit
- ₹10 lakh
- New limit
- ₹20 lakh
- New category
- Tarun Plus (above ₹10 lakh to ₹20 lakh)
- Eligibility for Tarun Plus
- Those who availed and repaid Tarun loans
- Guarantee
- CGFMU
- Announced in
- Union Budget 2024-25 (23 Jul 2024)
Practice MCQs 3 questions
As notified (PIB, 25 October 2024), the maximum loan limit under the Pradhan Mantri Mudra Yojana was raised from ₹10 lakh to:
Show answer
Correct answer: B — ₹20 lakh
PIB, 25 Oct 2024: the limit of Mudra loans under PMMY has been enhanced from current Rs. 10 lakh to Rs. 20 lakh.
What is the name of the new Mudra loan category for loans above ₹10 lakh and up to ₹20 lakh (PIB, 25 October 2024)?
Show answer
Correct answer: C — Tarun Plus
PIB, 25 Oct 2024: the new category of Tarun Plus is for loans above Rs. 10 lakh and up to Rs. 20 lakh, for entrepreneurs who have availed and repaid previous Tarun loans.
Under which fund will guarantee coverage be provided for PMMY loans up to ₹20 lakh, as per the release of 25 October 2024?
Show answer
Correct answer: A — Credit Guarantee Fund for Micro Units (CGFMU)
PIB, 25 Oct 2024: the guarantee coverage of PMMY loans upto Rs. 20 lakh will be provided under the Credit Guarantee Fund for Micro Units (CGFMU).