Credit Support For MSMEs, Mudra Loans Limit To Be Enhanced To Rs 20 Lakh

The government has doubled the upper limit of loans under the Mudra scheme, Finance Minister Nirmala Sitharaman announced while presenting the Budget 2024 today. She also announced a new mechanism for facilitating continuation of bank credit to MSMEs during their stress period.

Micro, Small, and Medium Enterprises (MSMEs) will now be able to avail loans up to Rs 20 lakh instead of Rs 10 lakh under the Mudra scheme, which aims to bolster the start-up ecosystem in the country.

Pradhan Mantri Mudra Yojana was launched in 2015 to provide loans up to Rs 10 lakh to small and micro enterprises from commercial banks, small finance banks, and non-banking financial corporations.