Sign In
Learn bits
Economy
Mahesh

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

More Related Current Affairs View All

19 Nov

Grievance Redressal Assessment And Index (GRAI) 2023 Launched

'Union Minister of State (Independent Charge) Science & Technology; Dr Jitendra Singh has launched Grievance Redressal Assessment and Index (GRAI) 2023.' Grievance Redress

Read More

19 Nov

Smog disrupts flights

'With the national capital enveloped in a blanket of noxious smog, flight operations at the Indira Gandhi International Airport in Delhi have been impacted.' At least 15 fligh

Read More

19 Nov

India’s road to net-zero

'Every year, climate action draws significant attention in the months leading up to the United Nations’ annual meeting of the Conference of the Parties (COPs).' An econo

Read More

India’s First Ai-Driven Magazine Generator

Generate Your Custom Current Affairs Magazine using our AI in just 3 steps