To enable every last mile financer to lend credit to all types of businesses in the country, the MUDRA- Micro Units Development and Refinance Agency bank was established as a public sector financial institution. Low rate loans are provided by micro financers under this scheme.
This Government scheme is an important topic for the IAS Exam. Subjects related to this topic are Indian Polity and Social Justice from General Studies paper 2 as well as Indian Economy from general Studies paper 3 of the UPSC Syllabus.
Pradhan Mantri Mudra Yojana
Launched in April 2015 by the Prime Minister, the Mudra Yojana aims to enable Micro Finance Institutions (MFIs), Non-Banking financial institutions/Companies (NBFCs), Small Finance Banks, RBRs, Commercial Banks, Cooperative Banks, etc. to provide Low Rate Loans to eligible entities.
Candidates can know the detailed information about the Pradhan Mantri Mudra Yojana on the Official Website (https://www.mudra.org.in/).
PMMY Eligibility
To avail of the benefits of the PMMY Scheme, the person should be a citizen of India. The loans are basically for people having a business plan in a Non-Farming Sector with Income generating activities like the following:
- Manufacturing
- Processing
- Trade
- Service Sector
- Or any other fields whose credit demand is less than ₹10 lakhs.
The Indian Citizen seeking MUDRA Loans under the PMMY Scheme will have to approach either an MFI, Bank or NBFC to avail it.
Types of PMMY Loans
The Pradhan Mantri Mudra Yojana (PMMY) has three products as per the funding requirements of the Beneficiary or the Entrepreneur.
| Name of the Type of Loan | Coverage of the Loan |
| Shishu | < ₹50,000 |
| Kishor | Above ₹50,000 up to ₹5,00,000 |
| Tarun | Above ₹5,00,000 up to ₹10,00,000 |
Sectors Covered under PMMY
To maximize coverage of beneficiaries and tailor products to meet requirements of specific business activities, sector/activity focused schemes would be rolled out. To begin with, based on the higher concentration of businesses in certain activities/sectors, schemes are proposed for:
| Sector | Comments | Types of Activities under that Sector |
|
Land Transport Sector |
Loans to support the purchase of transport vehicles. These vehicles could be used for goods or personal transport. |
|
| Service Sector | This includes community services, social services, or personal services. |
|
| Food Product Sector | Support for small scale food industries. |
|
| Textile Sector | Supporting micro textile industries that produce garment and non-garment products. |
|
Pradhan Mantri Mudra Yojana (PMMY):- Download PDF Here
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