Pradhan Mantri Mudra Yojana

Pradhan Mantri Mudra Yojana Lates News

Recently, the Pradhan Mantri Mudra Yojana (PMMY) — completed 11 Years of empowering Small and Micro Entrepreneurs.

About Pradhan Mantri Mudra Yojana

• It was launched on April 8, 2015.
• It is the Flagship Programme of the central government aimed at funding the Unfunded microenterprises and small businesses.
• Any Indian citizen who has a business plan for a non-farm sector income generating activity such as manufacturing, processing, trading or service sector canavail loans under this yojana.

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Features of Pradhan Mantri Mudra Yojana

• MUDRA loans are being offered in four categories namely, ‘Shishu’, ‘Kishor’, ‘Tarun’ and ‘TarunPlus’
  • Shishu: covering loans upto Rs. 50,000/-
  • Kishor: covering loans above Rs. 50,000/- and up to Rs. 5 lakhs
  • Tarun: covering loans above Rs.5 lakh and upto Rs.10 lakhs
  • TarunPlus: covering loans above Rs.10lakh and upto Rs.20 lakhs
• Loans cover term financing and working capital needs across manufacturing, trading and service sectors, including activities allied to agriculture like poultry, dairy, and beekeeping, etc.
• These loans are given by Commercial Banks, RRBs, Small Finance Banks, MFIs and NBFCs. 
• The interest rate is governed by RBI guidelines, with flexible repayment terms.
• MUDRA, which stands for Micro Units Development & Refinance Agency Ltd, is a financial institution set up by the Government of India under PMMY for development and refinancing micro unit enterprises.

Source: PIB