The Department of Financial Services (DFS) in the Union Finance Ministry has created a new ‘Tarun Plus’ category under the Pradhan Mantri MUDRA Yojana (PMMY) to encourage entrepreneurship in the country.
Key points
- Under the new category, loans above Rs. 10 lakhs up to Rs. 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 Rs. 20 lakhs from Rs. 10 lakh earlier.
- The DFS has also announced that the guarantee coverage for Pradhan Mantri Mudra Yojana loans up to Rs. 20 lakh will now fall under the Credit Guarantee Fund for Micro Units (CGFMU).
Pradhan Mantri MUDRA Yojana (PMMY)
- The Pradhan Mantri MUDRA Yojana (PMMY) was launched on 8th April 2015 by Prime Minister Shri Narendra Modi with the aim to facilitate easy collateral-free micro credit to non-corporate, non-farm small and micro entrepreneurs for income generating activities.
- The loans under PMMY are provided by Member Lending Institutions (MLIs), i.e., Banks, Non-Banking Financial Companies (NBFCs), Micro Finance Institutions (MFIs) and other financial intermediaries.
- Under the Pradhan Mantri Mudra Yojana (PMMY), Mudra loans provide financial assistance through collateral-free/third-party guarantee-free loans up Rs. 20 lakhs (Earlier Rs 10 lakh).
- 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.
