PM MUDRA YOJANA
About the scheme:
- Pradhan Mantri MUDRA Yojana (PMMY) is a scheme launched by the Hon’ble Prime Minister on April 8, 2015 for providing loans up to 10 lakh to the non-corporate, non-farm small/micro enterprises.
- These loans are classified as MUDRA loans under PMMY.
- These loans are given by Commercial Banks, RRBs, Small Finance Banks, MFIs and NBFCs.
- MUDRA, which stands for Micro Units Development & Refinance Agency Ltd., is a financial institution set up by the Government.
- It provides fundingto the non-corporate small business sector through various last-mile financial institutionslike Banks, Non-Banking Financial Companies (NBFCs )and Micro Finance Institutions (MFIs).
- MUDRA does not lend directly to micro-entrepreneurs/individuals.
PMMY Eligibility:
- To avail of the benefits of the PMMY Scheme, the person should be a citizen of India.
- The loans are basically for people having a business plan in a Non-Farming Sectorwith Income generating activitieslike the following:
- Manufacturing
- Processing
- Trade
- Service Sector
- Or any other fields whose credit demand is less than ₹10 lakhs.
The Indian Citizen seeking MUDRA Loans under the PMMY Scheme will have to approach either an MFI, Bank or NBFC to avail it.
Types of PMMY Loans:
The Pradhan Mantri Mudra Yojana (PMMY) has three products as per the funding requirements of the Beneficiary or the Entrepreneur.
| Name of the Type of Loan | Coverage of the Loan |
| Shishu | < ₹50,000 |
| Kishor | Above ₹50,000 up to ₹5,00,000 |
| Tarun | Above ₹5,00,000 up to ₹10,00,000 |
Syllabus: Prelims + Mains; GS III – Economy