July Budget 2024 PM Mudra Yojana announcement takes effect

A higher threshold of Rs 20 lakh applicable to loans nether the Pradhan Mantri Mudra Scheme announced successful the Union Budget 2024 took effect connected Friday, October 25. During her July 23 code successful Parliament, Finance Minister Nirmala Sitharaman had announced the determination to treble the maximum indebtedness magnitude nether the strategy to Rs 20 lakh successful a bid to beforehand entrepreneurship. Under Pradhan Mantri Mudra Yojana, the higher bounds of Rs 20 lakh nether the Tarun Plus category will beryllium provided to entrepreneurs who person already serviced their loans nether the Tarun class earlier, according to an authoritative notification. 

Here are 10 things to cognize astir this improvement and the Pradhan Mantri Mudra scheme: 

• "The bounds of Mudra loans volition beryllium enhanced to Rs 20 lakh from the existent Rs 10 lakh for those entrepreneurs who person availed and successfully repaid erstwhile loans nether the ‘Tarun’ category," the concern curate had announced connected July 23. 
• The higher bounds is "specifically beneficial to upcoming entrepreneurs facilitating their maturation and expansion", according to the Finance Ministry.
• The PM Mudra strategy is aimed astatine "funding the unfunded" and supporting the country's startup ecosystem.
• Now, a warrant sum of up to Rs 20 lakh volition beryllium provided nether the strategy alternatively of the existing Rs 10 lakh. 
• Until now, the cardinal authorities provided fiscal assistance to tiny and micro enterprises (SMEs) successful the non-farm assemblage done the PM Mudra scheme. 
• Loans availed nether the strategy are meant for income-generating SMEs for backing activities specified arsenic manufacturing, trading, and services. 
• The loans are provided by banks, NBFCs, microfinance institutions (MFIs), and different subordinate lending institutions. 
• Under the scheme, collateral-free loans are disposable successful 3 categories:
  • Shishu: Up to Rs 50,000
  • Kishore: Rs 50,000 to Rs 5,00,000
  • Tarun: Rs 10 lakh
• Prime Minister Narendra Modi had launched the strategy successful April 2015 to facilitate casual collateral-free micro-credit to non-corporate, non-farm SMEs for income-generating activities.
• The Mudra scheme extends fiscal enactment to income-generating SMEs successful the non-farm assemblage without collateral nether definite conditions.