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09/04/23 09:06 AM IST

Pradhan Mantri MUDRA Yojana (PMMY)

In News
  • The Pradhan Mantri MUDRA Yojana (PMMY) was launched on 8th April 2015 by Prime Minister Shri Narendra Modi with the aim to facilitate easy collateral-free micro credit of up to ₹10 lakh to non-corporate, non-farm small and micro entrepreneurs for income generating activities.
About PMMY
  • The loans under PMMY are provided by Member Lending Institutions (MLIs), i.e., Banks, Non-Banking Financial Companies (NBFCs), Micro Finance Institutions (MFIs) and other financial intermediaries.
  • Three products, dubbed “Shishu,” “Kishore,” and “Tarun,” were developed by MUDRA in response to the funding and growth requirements of the recipient micro-units.
  • Shishu: Providing coverage for loans up to Rs. 5000
  • Kishore: Loans beyond Rs. 50,000 and up to Rs. 5 lakh are covered.
  • Tarun: covers loans up to Rs. 10 lakh.
Significance
  • The PMMY scheme aims to provide collateral free access to credit in a seamless manner to micro enterprises in the country.
  • It has brought the unserved and under-served sections of the society within the framework of institutional credit.
  • The government policy of promoting MUDRA has led millions of MSME enterprises in the formal economy and has helped them to get out of the clutches of money-lenders offering very high cost funds.
Achievements
  • Since the PMMY’s establishment in April 2015, around 32.53 billion loans totaling a sanctioned sum of Rs. 17.32 lakh crore have been made available.
  • Disadvantaged groups in society, including women business owners, SC/ST/OBC borrowers, minority community borrowers, etc., have received loans. New entrepreneurs have also been the spotlight.
  • According to a survey done by the Ministry of Labor and Employment, between 2015 and 2018, PMMY contributed to the creation of 1.12 crore net more jobs.
  • Women made up 69 lakh (62%) of the 1.12 crore anticipated increase in employment.
Source- PIB

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