The government on Tuesday announced several measures to boost the sentiments of the non-farming business community and MSMEs, along with enhancing Mudra loans to Rs 20 lakh from Rs 10 lakh.
While delivering the Union Budget 2024-2025 speech in the Lok Sabha, Finance Minister Nirmala Sitharaman said that this extension applies to those who have availed and paid previous Mudra loans.
Pradhan Mantri Mudra Yojana (PMMY) is a flagship scheme of the government which facilitates micro credit/loan up to Rs 10 lakh to income generating micro enterprises engaged in the non-farm sector in manufacturing, trading or service sectors including activities allied to agriculture such as poultry, dairy, beekeeping, etc.
The scheme provides financial assistance extended by member lending institutions to the non-corporate, non-farm sector income generating activities of micro and small entities.
The budget also provides special attention to MSMEs and manufacturing.
The Finance Minister announced a credit guarantee scheme for MSMEs in the manufacturing sector, facilitating term loans for purchase of machinery and a formulated package to finance technology support to MSMEs.