The Pradhan Mantri MUDRA Yojana (PMMY) celebrated its 8th anniversary on 8th April 2023. The PMMY was launched on 8th April 2015 by Prime Minister 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.
Key points
- More than 40.82 crore loans amounting to ₹23.2 lakh crore have been sanctioned since launch of the Scheme.
- Approximately 21% of the total loans have been sanctioned to New Entrepreneurs.
- Approximate 69% loans of the total number of loans have been sanctioned to Women Entrepreneurs & 51% loans have been sanctioned to SC/ST/OBC categories of borrowers.
- 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.
- The loans have been divided into three categories based on the need for finance and stage in maturity of the business. These are Shishu (loans up to ₹50,000/-), Kishore (loans above ₹50,000/- and up to ₹5 lakh), and Tarun (loans above ₹5 lakh and up to ₹10 lakh).
- Loans under PMMY are provided to meet both term loan and working capital components of financing for income generating activities in manufacturing, trading and service sectors, including activities allied to agriculture such as poultry, dairy, beekeeping, etc.
- The rate of interest is decided by lending institutions in terms of RBI guidelines. In case of working capital facility, interest is charged only on money held overnight by borrower.
