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The maximum amount that can be availed under the Pradhan Mantri Mudra Yojana is Rs. 10 lakhs. However, the loan amount varies across three schemes, which are distinguished based on the stage of growth and development of the business and financing needs. Mudra loans are categorised as follows depending on the loan amount:

  • Shishu: The Shishu scheme offers loans limited up to Rs. 50,000. The maximum tenure to pay off the loan is 5 years in this case. It is usually offered to borrowers who are about to start their new ventures and are at an early stage of business setups.
  • Kishor: The Kishor scheme offers loans ranging up to Rs. 5 lakhs. However, the tenure is not fixed and may vary across lenders. The Kishor scheme is valid for existing business owners, who need funds to stabilize their business units. Also, in case a new venture that requires more funds than what the Shishu scheme offers, he/she can opt for the Kishor scheme.
  • Tarun: The Tarun scheme offers loans within the range of Rs. 5 lakhs to Rs. 10 lakhs, wherein the bank decides the loan tenure as per its policies. The Tarun scheme provides funds for business people who tend to seek business expansions on a comparatively bigger stage.

Banks offering the Pradhan Mantri Mudra Yojana are required to allot 60% of Mudra loans under the Shishu scheme and the remaining 40% under the Kishor and Tarun schemes

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