Finance minister (FM) Nirmala Sitharaman on July 23 (Tuesday) announced that the limit of loans provided under the Pradhan Mantri MUDRA Yojana (PMMY) will be increased to INR 20 Lakh from the existing INR 10 Lakh.

The increase in the limit of loans will be for entrepreneurs who had applied, availed and repaid MUDRA loans under the TARUN category to date

The TARUN category of the MUDRA loan provides loans in the range of INR 5 Lakh to INR 10 Lakh. The other two categories include Shishu loans (under INR 50,000) and Kishor loans (between INR 50,000 and INR 5 Lakh).

The PMMY scheme was launched by the government on April 8, 2015, for providing loans of up to 10 Lakh to non-corporate, non-farm small & micro enterprises. These loans are classified as MUDRA loans under PMMY.