Just as the Janani Suraksha Yojana aims to enhance maternal health, the Pradhan Mantri Mudra Yojana (PMMY) is designed to bolster non-corporate, non-farm small and micro enterprises across India. Initiated by the government, this scheme empowers these enterprises by providing financial support.
Pradhan Mantri Mudra Yojana (PMMY) is a flagship scheme of the Government of India that provides loans up to 10 lakh to non-corporate, non-farm small/micro-enterprises. These loans are classified as Mudra loans under PMMY, which are given by Commercial Banks, RRBs, Small Finance Banks, MFIs and NBFCs. The borrower can apply for a Mudra loan from any of the lending institutions mentioned above.
Launched in April 2015, the Pradhan Mantri Mudra Yojana was introduced by the Prime Minister of India. It was created to support the unbanked and underbanked entrepreneurs of India, setting a foundation for a more inclusive financial sector.
The primary aim of Mudra Yojana is to provide loans to small/micro business sectors to enable them to grow and sustain. By providing financial assistance, the scheme helps in boosting the country’s economic status and increasing employment rates.
PMMY is facilitated through the Mudra Bank, which refinances financial institutions that lend money to small businesses. The scheme is backed by funding from the Government of India, which ensures that loans are available at affordable rates.
Mudra loans are categorized into three products:
Since its inception, the Pradhan Mantri Mudra Yojana has sanctioned over 20 crore loans, significantly impacting the small business landscape in India. The scheme has been pivotal in promoting entrepreneurship among the masses, particularly among youth and women.
The objectives of PMMY are manifold, focusing on fostering entrepreneurship and reducing unemployment. The scheme aims to:
The Mudra Yojana offers three types of loans, designed to cater to businesses at different stages of their development:
| Loan Type | Amount | Purpose |
|---|---|---|
| Shishu | Up to ₹50,000 | Start small businesses or activities |
| Kishor | ₹50,001 to ₹5 lakh | Expand existing business |
| Tarun | ₹5,00,001 to ₹10 lakh | Establish a well-set business |
PMMY covers a vast array of sectors that include, but are not limited to:
By covering these sectors, PMMY not only helps in providing the necessary capital to start and expand a business but also plays a crucial role in strengthening the backbone of the country’s economy – the small and micro enterprises.
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