National MSME Cluster Outreach Programme

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The National MSME Cluster Outreach Programme was launched with the primary aim of ensuring MSMEs (Micro, Small, and Medium Enterprises) across the country have improved access to financial services. This program is organized by the Ministry of Finance in collaboration with SIDBI (Small Industries Development Bank of India) and the Department of Financial Services. The initiative supports the growth and development of MSMEs by making financing more accessible, which is essential for their expansion and sustainability.

Pradhan Mantri Mudra Yojana (PMMY) and the New Loan Category: Tarun Plus

Under the Pradhan Mantri Mudra Yojana (PMMY), a new loan category called Tarun Plus has been introduced. This category enables emerging entrepreneurs to access loans between ₹10 lakh and ₹20 lakh, aimed at supporting their business growth and expansion. The PMMY categorizes loans into different segments based on loan amount, including Shishu (up to ₹50,000), Kishore (₹50,000 to ₹5 lakh), Tarun (₹5 lakh to ₹10 lakh), and now Tarun Plus (₹10 lakh to ₹20 lakh).

Credit Guarantee for Tarun Plus Loans

Loans under the Tarun Plus category are backed by the Credit Guarantee Fund for Micro Units, providing assured coverage for lenders, which encourages financial institutions to lend to these emerging entrepreneurs. This guaranteed coverage reduces the risk for lenders and makes credit more accessible for small businesses.

Purpose of Tarun Plus

The purpose of introducing the Tarun Plus loan category is to foster entrepreneurship within the country. By enabling access to larger loans, this scheme helps entrepreneurs expand their businesses, contributing to economic growth and job creation.

Eligibility for Tarun Plus

To be eligible for the Tarun Plus loan, applicants must have previously taken and successfully repaid a loan under the Tarun category. This ensures that only experienced and responsible borrowers, who have shown a track record of repayment, can access the larger loan amounts under the Tarun Plus scheme.