The Pradhan Mantri MUDRA Yojana (PMMY), launched in 2015 to promote entrepreneurship, provides collateral-free loans of up to Rs 10 lakh. What is the new maximum loan amount under the Tarun category as announced in the Union Budget 2024-25?

The correct answer is Rs 20 lakh.

In News

• The Union Budget 2024-25 has increased the maximum loan amount under the Tarun category of PMMY to Rs 20 lakh from the earlier limit of Rs 10 lakh.

Key Points

• PMMY was launched in 2015 with the aim of supporting small and microenterprises through easy access to financial assistance.
• The scheme provides collateral-free loans of up to Rs 10 lakh for businesses in the micro, small, and medium enterprises (MSME) sector.
• The maximum loan amount under the Tarun category has been increased to Rs 20 lakh as per the Union Budget 2024-25.
• PMMY is intended to provide financial support for business expansion, with a focus on small entrepreneurs in rural and urban areas.

Additional Information

• MUDRA (Micro Units Development and Refinance Agency)
  • Established in 2015 as an NBFC for supporting microenterprises.
  • Provides financial assistance to MSMEs through banks and other financial institutions.
• Union Budget 2024-25
  • Introduced several provisions to boost entrepreneurship and economic growth in India.
  • The increased loan amount for the Tarun category aims to enhance business expansion opportunities.
• MSME Sector in India
  • MSMEs form the backbone of India's economy, contributing to employment and GDP growth.
  • Support through MUDRA loans helps in the growth and sustainability of MSMEs.