Union Finance Minister Nirmala Sitharaman had made an announcement on the issue in the Union Budget.
"This increase aspires to further the overall objective of the Mudra Scheme which is Funding the Unfunded," read a government statement.
This enhancement is specifically beneficial to upcoming entrepreneurs facilitating their growth and expansion.
"The move is in alignment with the Governmment’s commitment in fostering a robust entrepreneurial ecosystem," the statement said.
As per the notification issued in this regard, the new category of Tarun Plus is for Loans above Rs. 10 lakh and upto Rs. 20 lakh and would be available to the entrepreneurs who have availed and successfully repaid previous loans under the Tarun category.
The guarantee coverage of PMMY loans upto Rs. 20 lakh will be provided under the Credit Guarantee Fund for Micro Units (CGFMU).