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

05 Mar

First-ever comprehensive survey of India’s river dolphins

'Prime Minister Narendra Modi released the results of the first-ever comprehensive population estimation of riverine dolphins – Gangetic and Indus dolphins – done in In

Read More

05 Mar

Arresting women at night

'The Madurai Bench of the Madras High Court in Deepa versus S. Vijayalakshmi and Others ruled that the legal provision in the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023, which

Read More

05 Mar

Digital Personal Data Protection Act, 2023

'The Ministry of Electronics and Information Technology (MeitY) looking to wrap up public consultations on the draft Rules for the Digital Personal Data Protection Act, 2023 by Mar

Read More

India’s First Ai-Driven Magazine Generator

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