Business Loan 2025: Big gift from the government before Diwali, those starting a business will get a loan of Rs 20 lakh

Pradhan Mantri Mudra Yojana (PMMY) was launched under the Self-reliant India campaign, so that people can start their own business. Under this scheme, the government provides loans to small and medium businesses, so that they can become financially empowered. Before Diwali, the government has made a big change in this scheme.

Now you will get a loan of Rs 20 lakh for business instead of Rs 10 lakh

Now before Diwali, the government has made a big change in this scheme and increased the loan limit. Earlier, a maximum loan of Rs 10 lakh was given under this scheme, but now it has been increased to Rs 20 lakh. 

The Finance Ministry announced this change and said that this decision has been taken to make the Mudra scheme accessible to more people. The purpose of this change is to provide more financial assistance to small businessmen (Business Loan), so that they can grow their business rapidly and become financially strong.

Finance Minister Nirmala Sitharaman had hinted at this change while presenting Budget 2024. She had said that the maximum loan limit under the Pradhan Mantri Mudra Yojana would be increased so that small businessmen can get more capital according to their needs. 

However, this benefit will be available to those beneficiaries who have repaid the earlier loan under the 'Tarun' category. This will act as an incentive for those who want to expand their business further.

Eligibility for Pradhan Mantri Mudra Yojana

Only Indian citizens can avail the benefits of Pradhan Mantri Mudra Yojana. The eligibility conditions for this are as follows -
The applicant must be at least 18 years of age.
Bank defaulters are not eligible for this scheme.
The benefits of the scheme are only for individual or partnership business, not for any corporate entity.
The applicant must have a bank account to apply.

There are three categories of loans under the Mudra scheme. 

Shishu Loan – In this category, loan up to Rs 50,000 is available (Loan News). This is for those people who want to start a business on a small scale.
Kishor Loan – Under this, loan ranging from Rs 50,000 to Rs 5 lakh is available. This category includes those people whose business is going to expand.
Tarun Loan – In this category, loan ranging from Rs 5 lakh to Rs 20 lakh is available. Its benefit will be given to those who have repaid the loan taken earlier and want to expand the business further.

Where can I apply?

Under the Pradhan Mantri Mudra Yojana, loan can also be applied for through government and private banks, regional rural banks, small finance banks and non-banking finance companies (NBFCs). 

It is easy to apply for a loan under the Prime Minister Mudra Yojana. For this, the applicant has to go to the nearest bank and fill the form. 

In this, information related to the business, details of estimated income and expenditure, history of previous loans and necessary documents have to be submitted. Bank officials also help in the application process, which makes the process easier.