Recently in News: Pradhan Mantri MUDRA (Micro Units Development and Refinance Agency) Yojana has completed 8 years. As of 24th March 2023, around 23.2 lakh crore has been sanctioned in 40.82 crore loan accounts. About 68% of accounts under the scheme belong to women entrepreneurs and 51% of accounts belongs to entrepreneurs of SC/ST and OBC categories.
Ministry: Ministry of Finance.
About Scheme: 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. 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.
Features: The loans have been divided into three categories based on the need for finance and stage in maturity of the business.
1. Shishu (loans up to ₹50,000/-)
2. Kishore (loans above ₹50,000/- and up to ₹5 lakh)
3.Tarun (loans above ₹5 lakh and up to ₹10 lakh)
The implementation of financial inclusion programme in the country is based on three pillars, They are,
1. Banking the Unbanked
2. Securing the Unsecured
3. Funding the Unfunded
One of the three pillars of Financial Inclusion- Funding the Unfunded is achieved through PMMY.
