The Indian government has announced an extension of its PM Mudra Yojana, increasing the loan limit for aspiring entrepreneurs from ₹10 lakh to ₹20 lakh. This initiative aims to support young individuals who are facing financial constraints in starting their own businesses. The scheme's popularity led to this increase, recognizing the growing need for financial assistance in the entrepreneurial sector. Besides the doubled loan limit, the budget for FY2024-25 also introduced a new category called 'Tarun Plus' to further assist business seekers.

The PM Mudra Yojana functions through a structured approach where loans are distributed in four phases: Shishu, Kishor, Tarun, and Tarun Plus. Each category caters to businesses at different stages and financial needs, with Shishu providing loans of up to ₹50,000, Kishor ranging from ₹50,000 to ₹5 lakh, Tarun covering loans from ₹5 lakh to ₹10 lakh, and the newly added Tarun Plus category offering loans up to ₹20 lakh. This systematic classification allows greater flexibility for entrepreneurs to choose the financial support that fits their business model.

With the increased loan limits, the government aims to promote entrepreneurship among youth, thereby stimulating economic growth and job creation in India. This effort reflects a broader strategy to empower young talent and address financial barriers, marking a significant step towards fostering a robust startup culture in the country.