Pradhan Mantri Mudra Yojana
Introduction:
- Pradhan Mantri Mudra Yojana is a flagship scheme of the Government of India.
Ministry/Agency:
- Ministry of Finance
Objectives:
- Facilitate micro credit/Loan up to Rs. 10 lakh to income-generating micro-enterprises in the non-farm sector.
- Support financial intermediaries to extend loans to non-corporate, non-farm sector income-generating activities of micro and small entities.
Benefits:
- Loans available under three categories: Shishu, Kishor, and Tarun.
- Shishu: covering loans up to Rs. 50,000/-
- Kishor: covering loans from Rs. 50,001 to Rs. 5,00,000/-
- Tarun: covering loans from Rs. 5,00,001 to Rs. 10,00,000/-
- Loans available to various micro-enterprises engaged in the non-farm sector.
- Interest rates charged as per the policy decision of the bank.
- Upfront fee/Processing charges for Shishu loans waived by most banks.
Eligibility:
- Eligible borrowers include individuals, proprietary concerns, partnership firms, private Ltd. company, public company, and any other legal forms.
- Applicants should not be a defaulter to any bank or financial institution and should have a satisfactory credit track record.
- Individual borrowers may be required to possess the necessary skills/experience/knowledge to undertake the proposed activity.
Implementation strategy:
- Loans can be availed only through banks and lending institutions, which include public sector banks, private sector banks, state-operated cooperative banks, rural banks from the regional sector, institutions offering microfinance, and financial companies other than banks.
- Borrowers are advised to keep away from persons posing as Agents/facilitators of MUDRA/PMMY.
