Budget 2024: Mudra Loan Limit Hiked To Rs 20 Lakh From Rs 10 Lakh

New Delhi: Giving the much needed boost to the SME and MSME sector, Finance Minister Nirmala Sitharaman on Tuesday announced to hike the limit of Mudra Loan to Rs 20 lakh from Rs 10 lakh in the Tarun category.

FM Sitharaman said, "Budget provides special attention to MSMEs and manufacturing, particularly labour-intensive manufacturing. New mechanism announced for facilitating continuation of bank credit to MSMEs during their stress period."

The Pradhan Mantri MUDRA Yojana (PMMY) scheme was launched by the Modi government in April 2015 to provide loans up to Rs 10 lakh to the non-corporate, non-farm small/micro enterprises.

PMMY loans are extended by Member Lending Institutions viz. Scheduled Commercial Banks, Non Banking Finance Companies and Micro Financial Institutions, registered with Mudra Ltd.

Under the Pradhan Mantri Mudra Yojana (PMMY), Scheme by banks and Micro Finance Institutions (MFIs) Loans are extended in three categories:

Shishu (loans upto Rs. 50,000);

Kishore (loans from Rs. 50002 to Rs. 5 lakh);

Tarun (loans from Rs.5 lakh to Rs. 10 lakh)

After the Budget 2024 announcement, Mudra loan under Tarun category will be hiked to Rs 20 lakh.