Banks sanction Rs. 4,930 crore (US$ 561 million) to 34,697 borrowers under Mudra Tarun Plus as of June 2025
- IBEF
- August 6, 2025
Under the newly introduced ‘Tarun Plus’ category of the Pradhan Mantri MUDRA Yojana (PMMY), banks have sanctioned over Rs. 4,930 crore (US$ 561 million) to 34,697 loan accounts as of June 2025. Announced in FY25, ‘Tarun Plus’ aims to incentivise borrowers who have successfully repaid their earlier Tarun category loans under PMMY. The scheme offers collateral-free loans of up to Rs. 20,00,000 (US$ 22,764) to eligible borrowers. According to Union Minister for Finance and Corporate Affairs Ms. Nirmala Sitharaman, banks are proactively reaching out to borrowers through their networks and conducting post-sanction inspections, stock statement reviews, and credit limit renewals to assess unit performance.
In a separate update, she also highlighted the continued efforts under the Pradhan Mantri Jan Dhan Yojana (PMJDY), launched in August 2014 under the National Mission on Financial Inclusion (NMFI). Extended beyond August 14, 2018, PMJDY focuses on ensuring access to universal banking services for unbanked households. To enhance financial literacy, banks are conducting regular awareness campaigns in rural and remote regions, promoting the use of RuPay Debit Cards, Direct Benefit Transfer (DBT), and digital payments. Business Correspondents (BCs) are trained to assist customers at micro-ATMs, and banks are actively nudging users via SMS and email to adopt digital channels. A dedicated review mechanism has been established to monitor the implementation and impact of PMJDY at the grassroots level.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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