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Government Expands PM MUDRA Yojana Loan Limits.

Government Schemes | Dated: 10 Apr 2026

To massively empower small business enterprises, the Ministry of Finance announced a highly crucial expansion of the PM MUDRA Yojana. The scheme now officially allows commercial banks to disburse collateral-free Tarun loans up to Rs 20 Lakh.

🎯 Key Highlights:

  • The previous maximum limit for the Tarun loan category was strictly Rs 10 Lakh.
  • It relies heavily on digital credit appraisals to ensure extremely rapid disbursement.
  • The scheme guarantees severe compliance from participating regional rural banks.

💡 Other Important Facts:

  • Scheme: PM MUDRA.
  • Expansion: Tarun Category.
  • New Limit: Rs 20 Lakh.

📚 Test Your Knowledge:

Under the recent expansion of the PM MUDRA Yojana by the Finance Ministry, the collateral-free loan limit for the Tarun category has been increased to what amount?

Correct Answer: Rs 20 Lakh

🚀 Quick Recap:

About PM MUDRA Yojana

  • Full Form - Micro Units Development and Refinance Agency
  • Categories - Shishu, Kishore, Tarun