In addition to raising Mudra loans to Rs 20 lakh from Rs 10 lakh, the government on Tuesday unveiled a number of initiatives aimed at improving the mood of MSMEs and the non-farming business community.
Finance Minister Nirmala Sitharaman stated that individuals who have taken out and repaid prior Mudra loans are eligible for this extension during her address presenting the Union Budget 2024–2025 in the Lok Sabha.
The government’s flagship programme, the Pradhan Mantri Mudra Yojana (PMMY), enables microcredit/loans up to Rs 10 lakh to revenue-generating microenterprises operating in the manufacturing, trading, or service sectors, as well as in industries related to agriculture like dairy, beekeeping, and poultry.
Through the program, member lending institutions offer financial support to micro and small businesses that generate revenue from non-farm, non-corporate sources.
Manufacturing and MSMEs are given particular emphasis in the budget as well.
The Finance Minister unveiled a credit guarantee program for MSMEs operating in the manufacturing sector, which allows term loans for the acquisition of machinery and offers a range of financing options to support MSMEs in their technological endeavours.
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