PM Mudra Yojana: Around 25,000 Beneficiaries Added by Lenders Under the Tarun Plus Category:

PM Mudra Yojana: Around 25,000 Beneficiaries Added by Lenders Under the Tarun Plus Category Nearly 25,000 beneficiaries have been added by lenders under the Tarun Plus category of PM Mudra Yojana (PMMY) in just 4 Months of FY25. The scheme provided loans up to Rs. 20 lakh to the borrowers.

What is PM Mudra Yojana?

The Pradhan Mantri Mudra Yojana (PMMY) offers collateral-free loans of up to Rs 10 lakh to non-corporate, non-farm small and micro enterprises. It was introduced by Finance Minister Nirmala Sitharaman in the July Budget. In the Budget 2024-25, the limit for the loan was increased to Rs. 20 lakh for entrepreneurs who have successfully paid the loans under the 'Tarun category.' The PMMY was launched on April 8, 2015, by Prime Minister Narendra Modi. The goal of the scheme is to support people involved in manufacturing, trading, services, and even agriculture-related activities like dairy, poultry, and beekeeping. The scheme primarily focuses on non-corporate, small-scale enterprises that are often run as proprietorships or partnerships, such as Shopkeepers and vendors, Food stall owners, Small manufacturers, etc. These loans are provided through various lending institutions like scheduled commercial banks, regional rural banks (RRBs), small finance banks (SFBs), NBFCs, microfinance institutions (MFIs), and others, making the scheme easily accessible across the country. The Financial Services Secretary, M Nagaraju, has highlighted the achievements of PMMY to the media. He stated that 24,557 new borrowers have taken loans under the Tarun Plus category worth Rs 3,790 crore in just four months during FY25. Usually, Rs. 5-6 lakh crore loans are sanctioned under the scheme in recent years. Since the establishment of the scheme, around 52.37 crore loans of Rs. 33.65 lakh crore have been sanctioned. Around 20% of the loans were given to entrepreneurs or accounts, while 68% went to women entrepreneurs, and 50% have gone to SC/ST/OBC borrowers. He further added that the average loan size of the loans has hiked from Rs. 40,000 to Rs. 1.05 lakh, which makes it the biggest program in the world with loans of this size. Banks were asked to offer collateral-free loans up to 20 lakh to encourage small-scale businesses. The loan is offered under three categories: Shishu (up to Rs 50,000), Kishore (between Rs 50,000 and Rs 5 lakh) and Tarun (Rs 20 lakh).