Get Up To ₹20 Lakh Government Business Loan Without Any Collateral; Know The Process

Pradhan Mantri Mudra Yojana : In a major push to encourage entrepreneurship, the government has enhanced the loan ceiling under the Pradhan Mantri Mudra Yojana. Initially launched in 2015 to support non-corporate and non-agricultural small businesses, the scheme now offers Mudra loan up to 20 lakh without any collateral or guarantee.

The revision comes after the scheme’s growing popularity across the country. Until recently, the maximum loan amount was ₹10 lakh. Following the latest budget announcement for the financial year 2024–25, the cap has been doubled, allowing aspiring business owners to secure larger funding support.

Since its launch, more than 52 crore loans worth over ₹33 lakh crore have reportedly been sanctioned, reflecting strong uptake among small entrepreneurs.

Four Categories Of Loans Explained

Under the Pradhan Mantri Mudra Yojana, loans are structured into four categories based on the scale of business needs.

Shishu loans cover amounts up to ₹50,000 and are typically meant for early-stage micro ventures.

Kishore loans range from ₹50,000 to ₹5 lakh and cater to businesses seeking expansion or additional working capital.

Tarun loans provide funding between ₹5 lakh and ₹10 lakh for more established enterprises.

With the latest enhancement, the Tarun Plus loan category now allows borrowers to access funds between ₹10 lakh and ₹20 lakh, offering substantial support for scaling operations.

This tiered structure ensures that businesses at different stages of growth can access appropriate financial backing.