Centre Announces 'Tarun Plus' Category For Enhanced Credit Under PM Mudra

The Centre announced the Tarun Plus category under the Pradhan Mantri Mudra Yojana (PMMY) on Friday allowing an increased credit limit with banks now able to sanction loans up to Rs 20 lakh.

The finance ministry in a statement said, "This increase aspires to further the overall objective of the Mudra Scheme, which is funding the unfunded." The enhanced credit is aimed at facilitating the growth and expansion of upcoming entrepreneurs, it added.

In July, Finance Minister Nirmala Sitharaman, during the budget announcement enhanced the limit of Mudra loans from Rs 10 lakh to Rs 20 lakh.

Entrepreneurs who have availed and successfully repaid previous loans under the Tarun category will be able to avail loans under the Tarun Plus, the ministry stated. The guarantee coverage of PMMY loans up to Rs 20 lakh will be given under the Credit Guarantee Fund for Micro Units (CGFMU), the statement added.

Under the existing scheme, banks provide collateral-free loans up to Rs 10 lakh under three categories: up to Rs 50,000 under 'Shishu', between Rs 50,000 to Rs 5 lakh under 'Kishore', and Rs 10 lakh under 'Tarun'.

Also Read: Finance ministry ties up with 40 entities to extend loans under MUDRA scheme