New Delhi : Banks have taken a big decision regarding Pradhan Mantri Mudra Yojana. In the fourth month of FY 2024-25, about 25,000 beneficiaries have been added under the Tarun Plus category of PMMY. Under this, a loan of up to Rs 20 lakh is given to those taking borrowers. Finance Minister Nirmala Sitharaman announced the scheme in her last July budget.

According to the announcement made in the budget of FY 2024-25, the loan limit for entrepreneurs has been doubled to Rs 20 lakh, who have taken advantage of the previous loan under the Tarun category and successfully repaid it. After the budget announcement, the Tarun Plus scheme was notified on 25 October 2024.

Giving information about the achievements of PMMY, Financial Services Secretary M Nagaraju told reporters that 24,557 new borrowers took a loan of Rs 3,790 crore under the 'Tarun Plus' category in just 4 months during the financial year 2024-25. Prime Minister Narendra Modi started PMMY on 8 April 2015. Its objective was to provide institutional loans up to Rs 20 lakh without any guarantee through the financial institutions associated with the scheme.

Nagaraju said that from the beginning of this scheme, more than 52.37 crore loans of Rs 33.65 lakh crore have been approved, out of which about 20 percent of the loans have been given to new entrepreneurs. He said that 68 percent of debt has been given to women entrepreneurs and 50 percent have been given to Scheduled Castes/Scheduled Tribes/Backward Classes. He said that the average size of the loan has increased from Rs 40,000 to Rs 1.05 lakh. This is the world's largest program with debt of this size.

The average gross NPA ie non-performing asset under the scheme is steadily declining. It has come down to 2.21 percent in FY 2023-24. Through different initiatives of Pradhan Mantri Mudra Yojana, the financial needs of all parties from new entrepreneurs to hardworking farmers are noticed.

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Under PMMY, Scheduled Commercial Banks, Regional Rural Bank i.e. RRB, Small Finance Bank i.e. SFB, non-banking financial companies i.e. NBFCs, small amounts of lending institutions i.e. MFI give loan of up to Rs 10 lakh without any guarantee. These loans are given for manufacturing, income-producing activities in business and service sectors and work to agriculture. This scheme has been launched to encourage small enterprises. Under this, banks provide loans under three categories – baby (up to Rs 50,000), teenager (between Rs 50,000 to five lakh rupees) and Tarun (Rs 20 lakh) without any guarantee.