Bhubaneswar: The Government of India continues to strengthen financial support for small entrepreneurs through the Pradhan Mantri Mudra Yojana (PMMY), which provides collateral-free loans of up to ₹20 lakh to micro and small enterprises across the country.
Launched in 2015, the scheme aims to promote entrepreneurship and self-employment by enabling easy access to institutional credit for small businesses, start-ups and traditional enterprises that often struggle to obtain financing from banks.
Simplified Loan Process
To ensure faster and smoother access to funds, the government has simplified the loan application and approval process under the scheme. The streamlined procedures are designed to help entrepreneurs receive timely loan disbursals, particularly those running small businesses in rural and semi-urban areas.
Support for Small Businesses and Women Entrepreneurs
Under PMMY, loans are extended to a wide range of activities including small manufacturing units, handicrafts, service enterprises, agriculture-allied activities and traditional occupations. The scheme has also played a significant role in supporting women entrepreneurs, many of whom rely on small enterprises for their livelihoods and family income.
Officials say the initiative has become a key pillar of the government’s strategy to promote financial inclusion and grassroots entrepreneurship across India.
Introduction of ‘Tarun Plus’ Category
To encourage responsible borrowing and reward successful entrepreneurs, the government introduced a new loan category called “Tarun Plus” during the 2024-25 financial year. The category is designed for borrowers who have successfully repaid loans taken under the existing Tarun category of the Mudra scheme.
Eligible borrowers under Tarun Plus can access higher credit limits, enabling them to expand their businesses, upgrade equipment and scale up operations.
The Mudra scheme currently operates through different loan categories that cater to businesses at various stages of growth. By introducing Tarun Plus, the government aims to incentivize timely repayment and support the expansion of well-performing micro enterprises, further strengthening India’s small business ecosystem.
-OdishaAge
