Source: PIB
Context: In July 2024, the finance minister announced an increase in the loan limit to ₹20 lakh, effective from October 24, 2024, under the new Tarun Plus category.
About Pradhan Mantri MUDRA Yojana (PMMY):
- Origin: Launched on April 8, 2015.
- Ministry: The Ministry of Finance.
- Objective: Designed to promote financial inclusion and self-employment opportunities by extending credit to small-scale enterprises in manufacturing, trading, and services, including allied agricultural activities.
- Loan categories:
- Shishu: Loans up to ₹50,000 for nascent businesses.
- Kishore: Loans between ₹50,000 and ₹5 lakh for slightly developed businesses.
- Tarun: Loans above ₹5 lakh up to ₹10 lakh for mature businesses.
- Tarun Plus: New category with loans from ₹10 lakh to ₹20 lakh for successful Tarun borrowers.
- Member Lending Institutions (MLIs): Scheduled Commercial Banks, Regional Rural Banks (RRBs), Small Finance Banks (SFBs), Non-Banking Financial Companies (NBFCs), Micro Finance Institutions (MFIs) etc.
- Key features:
- Collateral-free loans: Offered through banks, NBFCs, RRBs, and MFIs without collateral, ensuring easier access.
- MUDRA card: A RuPay debit card offering flexible working capital, functioning as an overdraft facility for credit access and payment convenience.
- MUDRA MITRA app: A mobile app providing loan-related information, guidance, and resources for aspiring entrepreneurs.
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