PM Mudra Yojana

• Pradhan Mantri Mudra Yojana recently completed 8 years.

About the scheme

• PMMY was launched by Ministry of Finance in 2015, to facilitate easy collateral-free microcredit of up to 10 lakh to non-corporate, non-farm small, and micro entrepreneurs for income generating activities.
• MUDRA (Micro Units Development & Refinance Agency Ltd) Bank is a refinancing institution.
• Loans are provided by Member Lending Institutionse., Banks, Non-Banking Financial Companies (NBFCs), Micro Finance Institutions (MFIs) and other financial intermediaries.
• They do not require any collateral/ security.
• Rate of interest is decided by lending institutions in terms of RBI guidelines.
• Loans divided into three categories-
  • SHISHU-Loans upto Rs. 50,000 (For Start-ups and First-time Entrepreneurs)
  • KISHOR-Loans from Rs. 50,000 – Rs. 5 lakh (For Entrepreneurs with existing business)
  • TARUN-Loans from Rs. 5 lakh – Rs. 10 lakh (For Businessmen, loan amount to be used for business expansion)
• A success story
  • About ₹23.2 lakh crore has been sanctioned in 40.82 crore loan accounts.
  • About 68% of accounts under the scheme belong to women
  • 51% of accounts belong to entrepreneurs of SC/ST and OBC categories.