Pradhan Mantri Mudra Yojana
About
- The Pradhan Mantri MUDRA Yojana (PMMY) was launched in 2015 to bridge the gap in financial accessibility, offering collateral-free loans up to ₹20 lakh to the non-corporate, non-farm small/micro enterprises.
- PMMY aims to “fund the unfunded” by bringing the small entrepreneurs into the formal financial system and extending affordable credit to them.
- The Micro Units Development and Refinance Agency (MUDRA), serves as the supporting institution that provides refinance support to a network of lending institutions, enabling the flow of institutional credit.
- Loans under PMMY are extended through Member Lending Institutions (MLIs), including Scheduled Commercial Banks (SCBs), Regional Rural Banks (RRBs), Small Finance Banks (SFBs), Non-Banking Financial Companies (NBFCs), and Micro Finance Institutions (MFIs).
- Borrowers include non-corporate, non-farm micro and small enterprises across manufacturing, trading, services, and allied agricultural activities.
MUDRA Loan Categories:
- Mudra loans are offered in four categories namely, ‘Shishu’, ‘Kishore’, ‘Tarun’ and ‘Tarun Plus’ which signifies the stage of growth or development and funding needs of the borrowers:-
- Shishu : covering loans upto Rs. 50,000
- Kishore : covering loans above Rs. 50,000 and upto Rs. 5 lakh
- Tarun : covering loans above Rs. 5 lakh and upto Rs. 10 lakh
- Tarun Plus (started in 2024 for those entrepreneurs who have availed and successfully repaid previous loans under the ‘Tarun’ category) : covering loans above Rs. 10 lakh and upto Rs. 20 lakh.
- With an objective to promote entrepreneurship among the new generation aspiring youth, it is ensured that more focus is given to Shishu Category loans and then Kishore and Tarun and Tarun Plus categories.