- The Prime Minister Shri Narendra Modi launched Pradhan Mantri Mudra Yojana (PMMY) on April 08, 2015 to provide formal access of financial facilities to Non –Corporate Small Business Sector (NCSBS).
- All loans sanctioned on or after April 08, 2015 upto a loan size of Rs.10 lakh for non-farm income generating activities will be branded as PMMY loans.
Objective: To promote & ensure bank finance to unfunded segments of the economy.
- Non–Corporate Small Business Segment (NCSB) comprising of proprietorship / partnership firms running as small manufacturing units, service sector units, shopkeepers, fruits / vegetable vendors, truck operators, food-service units, repair shops, machine operators, small industries, artisans, food processors and others, in rural and urban areas.
Features of MUDRA Loans under PMMY
- Borrowers can avail loan facility from any Public/Private/ Regional Rural Banks, NBFCs and MFIs.
- No processing fee for loans up to Rs.50000/- (SHISHU category).
- Banks have been mandated by RBI not to insist for collateral security in the case of loans upto 10 lakh extended to the units in the Micro Small Enterprises sector.
- ‘Activities allied to Agriculture’ , e.g. pisciculture , beekeeping, poultry , livestock , rearing , grading, sorting , aggregation agro industries, diary, fishery, agriclinics and agribusiness centers, food & agro-processing, etc (excluding crop loans, land improvement such as canals, irrigation, wells ) and services supporting these, which promote livelihood or are income generating , have been included under PMMY from April, 2016 onwards.
Schemes under PMMY
|Scheme||Amount of Loan|
|Shishu||Up to Rs.50000/-|
|Kishore||Above Rs.50000/- and up to Rs. 5 Lakh|
|Tarun||Above Rs. 5 lakh and up to Rs.10 lakh|