About Pradhan Mantri MUDRA Yojana (PMMY)
- Launched: On 8 April 2015 by the Prime Minister of India.
- Nodal Ministry: Ministry of Finance, Government of India.
- Objective: To provide institutional, collateral-free credit to unfunded and underserved micro and small enterprises under the vision of “Funding the Unfunded.”
- Nature: A flagship scheme providing loans to non-corporate, non-farm micro and small enterprises for income-generating activities.
- Eligible Activities: Manufacturing, trading and service sectors, including allied agricultural activities such as dairy, poultry and beekeeping.
- Loan Coverage: Both term loans and working capital requirements are covered.
- Collateral: No collateral or third-party security is required.
- Eligible Borrowers: Individuals with viable business plans, as well as eligible small business enterprises.
Categories of MUDRA Loans
| Category | Loan Amount |
| Shishu | Up to ₹50,000 |
| Kishor | Above ₹50,000 and up to ₹5 lakh |
| Tarun | Above ₹5 lakh and up to ₹10 lakh |
| Tarun Plus | Above ₹10 lakh and up to ₹20 lakh |
Key Achievements
- Massive Scale: Over 52 crore loans worth more than ₹32 lakh crore have been sanctioned since 2015.
- Empowering Women and Minorities: 68% of the beneficiaries are women, and 50% belong to SC, ST, or OBC communities.
- Economic Growth: It has significantly boosted credit access for Micro, Small, and Medium Enterprises (MSMEs), driving grassroots job creation.
- Global Recognition: The International Monetary Fund (IMF) has repeatedly praised the scheme for expanding self-employment and empowering women-led businesses.
Conclusion
The PM MUDRA Yojana stands as a transformative force in India’s financial landscape, successfully democratizing credit access for millions of grassroots entrepreneurs. By consistently empowering women and marginalized communities, the scheme remains a vital driver of inclusive economic growth and national self-reliance.
| This Concept Has Been Elaborately Covered In This Article: Credit Guarantee Fund for Micro Units (CGFMU) |