Pradhan Mantri Mudra Yojana (PMMY)

Context:

More than 28.68 crore loans for an amount of Rs. 14.96 lakh crore have been sanctioned by banks, NBFCs and MFIs since the launch of Pradhan Mantri Mudra Yojana (PMMY).

About Pradhan Mantri Mudra Yojana:

Pradhan Mantri MUDRA Yojana (PMMY) is a scheme launched by the Hon’ble Prime Minister on April 8, 2015 for providing loans up to 10 lakh to the non-corporate, non-farm small/micro enterprises. These loans are classified as MUDRA loans under PMMY. These loans are given by Commercial Banks, RRBs, Small Finance Banks, MFIs and NBFCs. The borrower can approach any of the lending institutions mentioned above or can apply online through this portal www.udyamimitra.in . Under the aegis of PMMY, MUDRA has created three products namely ‘Shishu’, ‘Kishore’ and ‘Tarun’ to signify the stage of growth / development and funding needs of the beneficiary micro unit / entrepreneur and also provide a reference point for the next phase of graduation / growth.

MUDRA VISION

“To be an integrated financial and support services provider par excellence benchmarked with global best practices and standards for the bottom of the pyramid universe for their comprehensive economic and social development.”

MUDRA MISSION

“To create an inclusive, sustainable and value based entrepreneurial culture, in collaboration with our partner institutions in achieving economic success and financial security.”

Funding Provision:

• MUDRA, which stands for Micro Units Development & Refinance Agency Ltd., is a financial institution set up by the Government.
• It provides funding to the non-corporate small business sector through various last-mile financial institutions like Banks, Non-Banking Financial Companies (NBFCs) and Micro Finance Institutions (MFIs).
• MUDRA does not lend directly to micro-entrepreneurs/individuals.

Three Products:

• MUDRA has created three products i.e. ‘Shishu’, ‘Kishore’ and ‘Tarun’ as per the stage of growth and funding needs of the beneficiary micro unit.
  • Shishu: Covering loans up to Rs. 50,000.
  • Kishore: Covering loans above Rs. 50,000 and up to Rs. 5 lakh.
  • Tarun: Covering loans above Rs. 5 lakh and up to Rs. 10 lakh.
• Loans under this scheme are collateral-free loans.

Achievements:

• Loans have been given to disadvantaged sections of society such as women entrepreneurs, SC/ST/OBC borrowers, Minority community borrowers, etc. The focus has also been on new entrepreneurs.
  • As per a survey conducted by Ministry of Labour and Employment, PMMY helped in generation of 1.12 crore net additional employment from 2015 to 2018.
    • Out of the 1.12 crore of estimated increase in employment, women accounted for 69 lakh (62%).

ECONOMY