During the budget presentation yesterday, Finance Minister Nirmala Sitharaman announced a significant revision to Mudra loans, increasing the loan limit from 10 lakhs to 20 lakhs. This enhancement is accompanied by eligibility conditions, specifically that applicants must have successfully repaid their previous Mudra loans to qualify for the higher amount.
The Mudra loan scheme, launched on April 8, 2015, by the government, aims to facilitate easy access to credit for income-generating activities in micro and small enterprises. It is categorized into three segments: the Shishu category which provides loan up to 50,000 rupees, the second one is Kishor category which provides between 50,000 rupees to 5 lakhs and last is Tarun (from 5 lakhs to 10 lakhs).
Since its inception, the scheme has disbursed loans totaling over 27.75 lakh crore rupees, benefiting more than 47 crore individuals, including both small and large entrepreneurs. According to the Ministry of Finance, 30.64 crore rupees, equivalent to 69 percent of loans under the Pradhan Mantri Mudra Yojana (PMMY), have been allocated to women.
In addition to the Mudra Yojana, the government introduced the Stand Up India (SUPI) scheme in 2016 to promote greenfield enterprises. This initiative targets women as well as individuals from Scheduled Castes (SC) and Scheduled Tribes (ST), offering loans to facilitate the establishment of new ventures.
The increase in the Mudra loan ceiling is aimed at further empowering entrepreneurs by providing substantial financial support, thereby fostering economic growth and generating employment across diverse sectors of the economy.
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