Pradhan Mantri MUDRA Yojana (PMMY): FM Doubles MUDRA Loans Limit To Rs 20 Lakh; How To Apply

To further boost MSMEs in India, Finance Minister Nirmala Sitharaman has doubled the limit under MUDRA loans for entrepreneurs. Sitharaman said that the limit will be Rs 20 lakh from the earlier Rs 10 lakh, however, will be allotted to a specific category. Sitharaman presented her seventh Budget on Tuesday, since taking charge of Finance Ministry in 2019.

According to FM, only those entrepreneurs will receive Rs 20 lakh limit option, who have repaid their loans under the category earlier.

What is Pradhan Mantri MUDRA Yojana (PMMY)?

Pradhan Mantri MUDRA Yojana (PMMY) is a scheme launched by the Hon'ble Prime Minister on April 8, 2015, for providing loans to non-corporate, non-farm small/micro enterprises. These loans are classified as MUDRA loans under PMMY. These loans are given by Commercial Banks, RRBs, Small Finance Banks, MFIs and NBFCs.

Before Budget 2024, the loan benefit limit under MUDRA stood at Rs 10 lakh.

How To Apply?

As per the guidelines, the borrower can approach any of the lending institutions mentioned above or can apply online through this portal www.udyamimitra.in .

Under the aegis of PMMY, MUDRA has created three products namely 'Shishu', 'Kishore' and 'Tarun' to signify the stage of growth / development and funding needs of the beneficiary micro unit / entrepreneur and also provide a reference point for the next phase of graduation / growth.

Apart from this, Sitharaman on Tuesday announced new mechanism for facilitating continuation of bank credit to MSMEs during their stress period.

Further, FM reduced the turnover threshold of buyers for mandatory onboarding on the TReDS platform to Rs 250 crore from earlier Rs 500 crore. Also, financial support for 50 multi-product food irradiation units in the MSME sector.

Additionally, FM said that e-commerce export hubs are to be set up in PPP mode to enable MSMEs & traditional artisans to sell their products in international markets.