MUDRA 2.0 Loans:
The Union Budget 2024 has increased the loan limit under the scheme’s Tarun category to Rs 20 lakh, targeting those who have successfully repaid previous MUDRA loans.
- Pradhan Mantri Mudra Yojana (PMMY) is a flagship initiative by the Government of India that was launched in 2015 and aimed at providing affordable credit to micro and small enterprises.
- It focuses on integrating underserved enterprises into the formal financial system by offering them easy access to credit.
- The scheme is designed to “fund the unfunded,” enabling small borrowers to secure loans from various financial institutions including Public Sector Banks (PSBs), Regional Rural Banks (RRBs), Cooperative Banks, Private Sector Banks, Foreign Banks, Micro Finance Institutions (MFIs), and Non-Banking Financial Companies (NBFCs).
- Loan amount: Up to ₹10 lakh for non-farm income-generating activities in sectors such as manufacturing, processing, trading and services.
- Eligibility: Any Indian citizen with a viable business plan for a non-farm sector income-generating activity requiring credit below ₹10 lakh can apply for a MUDRA loan through banks, MFIs, or NBFCs.
- Categories of Loans:
- Shishu: Loans up to ₹50,000, aimed at new and micro enterprises.
- Kishore: Loans ranging from ₹50,000 to ₹5 lakh, for businesses in the growth phase.
- Tarun: Loans from ₹5 lakh to ₹10 lakh, for businesses looking to expand further.
- Subsidy: There is no direct subsidy under PMMY. However, if a loan is linked to a government scheme that provides capital subsidies, the loan can be availed under PMMY with the associated benefits.
