New Update! Pradhan Mantri MUDRA Yojana (PMMY) 2025: Tarun Plus Limit Increased to ₹20 Lakh – Check Your Eligibility & Apply Today

The Pradhan Mantri MUDRA Yojana (PMMY) is a flagship initiative launched by the Government of India to “fund the unfunded.” It provides financial support to non-corporate, non-farm small/micro-enterprises. For the year 2025, the government has introduced significant updates, including raising the loan limit to ₹20 Lakh under the new “Tarun Plus” category.

This blog post by AimIndia.in covers every detail you need: eligibility, interest rates, the JanSamarth online application process, and the document checklist. Whether you are starting a shop, a beauty parlor, or a small manufacturing unit, PMMY is the best collateral-free loan option for you.

In the Union Budget 2024-25, a major announcement was made for aspiring entrepreneurs. The limit for Mudra Loans has been doubled. Previously capped at ₹10 Lakh, the new category “Tarun Plus” now allows loans up to ₹20 Lakh.

Note: This enhanced limit is specifically available for entrepreneurs who have successfully repaid previous loans under the ‘Tarun’ category, encouraging business expansion.

Any Indian citizen who has a business plan for a non-farm income-generating activity is eligible. The specific criteria include:

• Entity Type: Proprietorship, Partnership Firm, Private Limited Company, or Public Company.
• Applicant: Artisans, Shopkeepers, Fruit/Vegetable vendors, Truck/Taxi operators.
• Agri-Allied: Activities like Dairy, Poultry, Beekeeping, and Pisciculture ARE eligible.
• Exclusions: Direct farming (crop cultivation) is NOT eligible for Mudra loans.
• Credit Score: While no collateral is needed, a CIBIL score of 650+ is recommended for faster approval.

Before applying, ensure you have soft copies (PDF/JPG) of the following:

The government has simplified the process via the JanSamarth portal. Follow these steps:

1. Visit the Portal: Go to the link provided in the “Important Links” section below (JanSamarth.in).
2. Check Eligibility: Click on the “Business Activity Loan” tab and answer 4-5 simple questions about your business type and income.
3. Registration: Enter your Mobile Number and verifying the OTP.
4. View Offers: Based on your data, the portal will show offers from 15+ banks (SBI, HDFC, PNB, etc.).
5. Upload Documents: Upload your Aadhaar, Pan, and Bank statements digitally.
6. Submit: Once submitted, you will receive a digital “In-Principle Approval”. The bank may contact you for final disbursement.

Q1: Is there any subsidy in Mudra Loan?
Generally, there is no subsidy for the general category. However, using the MUDRA loan via schemes like PMEGP may attract subsidies ranging from 15% to 35%.

Q2: Can I get a Mudra loan for buying a car?
Yes, if the vehicle (Auto, Taxi, E-Rickshaw, Small Truck) is used for commercial purposes to generate income.

Q3: What is the repayment tenure?
The loan can be repaid in flexible EMIs over a period of 3 years to 5 years (extendable up to 7 years for Tarun Plus).

Disclaimer: AimIndia.in provides information based on official government sources. We do not provide loans directly. Please verify all details with the official bank before applying.