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Pradhan Mantri Mudra Yojana

Pradhan Mantri Mudra Yojana:

More than 28.68 crore loans for an amount of Rs. 14.96 lakh crore has been sanctioned by banks, NBFCs, and MFIs since the launch of Pradhan Mantri Mudra Yojana (PMMY).

About Pradhan Mantri Mudra Yojana (PMMY):

  • It was launched by the government in 2015 for providing loans up to Rs. 10 lakh to non-corporate, non-farm small/micro-enterprises.
  • MUDRA, which stands for Micro Units Development & Refinance Agency Ltd., is a financial institution set up by the Government.
  • It provides funding to the non-corporate small business sector through various last-mile financial institutions like Banks, Non-Banking Financial Companies (NBFCs), and Micro Finance Institutions (MFIs).
  • MUDRA does not lend directly to micro-entrepreneurs/individuals.
  • Three Products:
    • MUDRA has created three products i.e. ‘Shishu’, ‘Kishore’ and ‘Tarun’ as per the stage of growth and funding needs of the beneficiary micro unit.
    • Shishu: covering loans up to Rs. 50,000.
    • Kishore: Covering loans above Rs. 50,000 and up to Rs. 5 lakh.
    • Tarun: covering loans above Rs. 5 lakh and up to Rs. 10 lakh.
  • Loans under this scheme are collateral-free loans.
  • Loans have been given to disadvantaged sections of society such as women entrepreneurs, SC/ST/OBC borrowers, Minority community borrowers, etc. The focus has also been on new entrepreneurs.
  • As per a survey conducted by the Ministry of Labour and Employment, PMMY helped in the generation of 1.12 crore net additional employment from 2015 to 2018.
  • Out of the 1.12 crore of the estimated increase in employment, women accounted for 69 lakh (62%).

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