The Department of Financial Services (DFS) in the Finance Ministry has created a new ‘Tarun Plus’ category under the Mudra Scheme to encourage entrepreneurship in the country.
Under the new category, loans above ₹ 10 lakhs up to ₹ 20 lakhs would be offered for entrepreneurs who have repaid their Tarun Loans.
The Finance Ministry has also implemented a budget announcement by Finance Minister Nirmala Sitharaman to increase the loan limit under the Mudra Scheme to ₹20 lakhs from ₹10 lakh earlier.
“As a part of budget announcement by Finance Minister on a major boost to Mudra loans under the #PMMY in Union Budget 2024-25! The limit is now enhanced from ₹ 10 lakh to ₹20 lakh, empowering entrepreneurs for growth.#FundingTheUnfunded@FinMinIndia”, said a social media post by DFS on platform “X”.
In another post, the DFS also said, “The new ‘Tarun Plus’ category has been created under #Mudrascheme and will offer loans above ₹ 10 lakh upto ₹ 20 lakh for entrepreneurs who have repaid their Tarun loans. Government’s commitment to a robust entrepreneurial ecosystem continues!”.
Meanwhile, the DFS has also announced that the guarantee coverage for Pradhan Mantri Mudra Yojana loans up to ₹ 20 lakh will now fall under the Credit Guarantee Fund for Micro Units (CGFMU).
“Great news for small business owners! The guarantee coverage for #PMMY loans upto ₹ 20 lakh will now fall under the Credit Guarantee Fund for Micro Units (CGFMU). Supporting dreams, one step at a time #Entrepreneurship”, said another post by DFS in platform ‘X’.
Under the Pradhan Mantri Mudra Yojana (PMMY), Mudra loans provide financial assistance through collateral-free/third-party guarantee-free loans up ₹20 lakhs.
The schematic interventions under Mudra have been named ‘Shishu’, ‘Kishor’, ‘Tarun’, and now ‘Tarun Plus’ 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.