Banks and financial institutions have sanctioned Rs 23.2 lakh crore to over 40.82 crore beneficiaries under the Mudra Yojana since its launch in 2015. Pradhan Mantri MUDRA Yojana (PMMY) was launched on April 8, 2015, by Prime Minister Narendra Modi to facilitate easy collateral-free micro-credit of up to Rs 10 lakh to non-corporate, non-farm small and micro-entrepreneurs.
Loans under PMMY are provided by banks, non-banking financial companies (NBFCs), microfinance institutions (MFIs) and other financial intermediaries.
Speaking on the occasion of the 8th anniversary, Finance Minister Nirmala Sitharaman said, “Since the launch of the scheme, as of March 24, 2023, about Rs 23.2 lakh crore has been sanctioned in 40.82 crore loan accounts”.
About 68 per cent of accounts under the scheme belong to women entrepreneurs, and 51 per cent of accounts belong to entrepreneurs of SC/ST and OBC categories. This demonstrates that easy availability of credit to the budding entrepreneurs of the country has led to innovation and sustained increase in per capita income, FM said.
Implementation of the financial inclusion (FI) programme in the country is based on three pillars –
- Banking the Unbanked
- Securing the Unsecured
- Funding the Unfunded
The Pradhan Mantri Mudra Yojana or PMMY is a flagship scheme of the Government of India to extend affordable credit to micro and small enterprises.
There are three types of Mudra loans depending on the loan amount:
- Shishu: Loans sanctioned under the PMMY scheme up to Rs. 50,000
- Kishore: Loans sanctioned under the PMMY scheme from Rs. 50,001 up to Rs.5 Lakhs
- Tarun: Loans sanctioned under the PMMY scheme Rs. 5,00,001 up to Rs. 10 Lakhs
- While there is no minimum loan amount under the Mudra loan scheme, the maximum loan amount that can be taken under the PMMY is Rs. 10 Lakhs.
- As per the PMMY scheme, the Mudra loan can not only be offered to enterprises in the non-farm sector but also can include those engaged in allied agricultural activities, such as horticulture and fisheries.