New Delhi. The Central Government has decided to provide big relief to small businessmen and youth preparing to start their own business. Approval has been given to continue the loan guarantee facility available under the Pradhan Mantri Mudra Yojana (PMMY) for the next five years. For this, the government has also approved a fund of Rs 5,000 crore. With this decision, eligible people will be able to get a loan up to Rs 20 lakh without mortgaging any property.
Government guarantee facility will continue till 31 March 2031
The government has extended the Credit Guarantee Fund for Micro Units (CGFMU) till March 31, 2031. Earlier, under Mudra Yojana, a maximum loan of up to Rs 10 lakh was available, but this limit has been increased to Rs 20 lakh for eligible businessmen.
In this system the government guarantees loans to the banks. In such a situation, businessmen will not need to mortgage land, house or gold to take loan. The government estimates that the Rs 5,000 crore fund will help provide new loans worth about Rs 12.6 lakh crore over the next five years.
Small businessmen and Jan Dhan account holders also benefit
The benefit of this decision can be availed not only by those starting a new business but also by eligible people already running their business. Under this, small shopkeepers and businessmen will be able to get loans up to Rs 20 lakh. At the same time, guarantee of overdraft facility up to Rs 10,000 for Jan Dhan account holders and guarantee cover on some eligible loans of self-help groups will also be available.
Women will also get loan up to Rs 1 crore
The government has also decided to continue the Stand-up India scheme till 31 March 2031. For this, a credit guarantee fund of Rs 4,111 crore has been approved. Under this scheme, eligible women and people belonging to Scheduled Caste and Scheduled Tribe category can get bank loan ranging from Rs 10 lakh to Rs 1 crore to start a new business. A target has been set to add 2.5 lakh new beneficiaries in the next five years.
Crores of people benefited from Mudra Scheme
Pradhan Mantri Mudra Yojana was started in January 2016. Till September 2026, more than 60.36 crore loans have been sanctioned under this scheme, the total amount of which is more than Rs 43.34 lakh crore. With this new decision of the government, the way of getting financial help for small businessmen, youth and people who want to start self-employment may become easier in the coming years.