Entrepreneurs Gain Access to Tarun Plus Loans: Flexible Amounts from 10 to 20 Lakhs

New Delhi : The Government of India has announced an increase in the loan limit under the Prime Minister Mudra loan scheme, raising it from ₹10 lakhs to ₹20 lakhs. This significant decision was unveiled by Finance Minister Nirmala Sitharaman during the Union Budget for 2024-2025 in July. In a recent social media update, the Department of Financial Services (DFS) introduced a new category within the scheme called “Tarun Plus,” specifically designed for entrepreneurs.

The Tarun Plus category aims to provide loans ranging from ₹10 lakhs to ₹20 lakhs for entrepreneurs who have successfully repaid their previous Tarun loans. This initiative is part of the government’s broader strategy to foster a more robust entrepreneurial ecosystem and support small businesses in scaling their operations.

Additionally, the DFS highlighted that loans up to ₹20 lakhs will now be covered under the Credit Guarantee Fund for Micro Units (CGFMU). This move is expected to enhance access to funding for small businesses, thereby encouraging entrepreneurship and innovation across various sectors.

The government’s commitment to promoting entrepreneurship is evident in this increase in loan limits and the introduction of the Tarun Plus category. By expanding the financial resources available to entrepreneurs, the initiative aims to empower individuals to pursue their business ideas more aggressively and contribute to economic growth.

Moreover, the increased loan limit is likely to attract a broader range of applicants, including those in sectors that require larger capital investments to start or expand operations. The DFS’s emphasis on the success of previous borrowers underlines the importance of responsible lending and repayment, ensuring that those who have demonstrated their ability to manage loans can access further financial support.

In summary, the introduction of the Tarun Plus category under the Prime Minister Mudra loan scheme represents a proactive approach by the government to bolster the entrepreneurial landscape in India. By increasing the loan limit and providing greater coverage under the CGFMU, the initiative seeks to facilitate funding access, stimulate business growth, and ultimately contribute to the country’s economic development. Entrepreneurs are encouraged to take advantage of this opportunity to secure funding that aligns with their growth aspirations and operational needs.