Pradhan Mantri Mudra Yojana (PMMY): The Yojna launched to provide funding for small units, small business, micro unit, entrepreneurs in India. The scheme was launched by prime minister on 8 April 2015 with a slogan “Funding the Unfunded”. PMMY was announced by finance minister Shri Arun Jaitley in Union Budget for Financial Year 2016. Pradhan Mantri Mudra Yojana is a scheme under which MUDRA Bank will be providing refinance to micro business.
Micro Units Development and Refinance Agency (MUDRA): It is a new financial institution initiated by prime minister to provide financial support to micro units and business. It is also called Mudra Bank.
Pradhan Mantri Mudra Bank has a corpus of more than Rs. 1,00,000 crore and the amount would help to increasing the overall output and creating newer jobs. According to the survey, a big population of India engaged in small business which always requires micro finance to manage their business according to their business needs.
Also Read: PM Mudra Loan Yojana
Pradhan Mantri Mudra Yojana2023
Pradhan Mantri Mudra Yojana: Under Pradhan Mantri Mudra Yojana (PMMY) three categories categories of interventions has been named which are mentioned below:
Shishu: The name of the categories mean Child which refers to start-ups. In this categories, those business will fall which are just started and looking for a loan of below Rs. 50,000/- Under this category, the applicant would be eligible to get up to Rs 50,000/- credit.
Kishor: This category of PMMY cater to those entrepreneurs who have requirement of funds in the range of Rs. 50,000/- to Rs 5 lakh. In this stage, the applicant would be eligible to get a loan in the range of Rs. 50,000/- to Rs. 5 lakh.
Tarun: It is the last category of PMMY. In this category, if an entrepreneur meets the required condition of this category, he/she can apply for a loan up to Rs. 10 lakh. This would be the highest amount of loan for which an entrepreneur can apply for stat up the business.
Products and offering in Pradhan Mantri Mudra Yojana:
• Micro Credit Scheme
• BC Model
• Credit Guarantee
• MUDRA Card
• Co-origination & Risk Sharing
• Equipment Finance Scheme
• Business Loan for Trader/shopkeepers
• Mahila Uddhyami Scheme
• Refinance Scheme for Banks
• Missing Middle Credit Scheme
Murda Bank Roles and Responsibilities. MUDRA would primarily be responsible for the activities mentioned below:
1) Laying down policy guidelines for micro enterprise financing business
2) Registration of MFI entities
3) Accreditation/rating of MFI entities
4) Laying down responsible financing practices to ward off over indebtedness and ensure proper client protection principles and methods of recovery
5) Development of standardized set of covenants governing last mile lending to micro enterprises
6) Promoting right technology solutions for financial delivery to the last mile
7) Formulating and running a Credit Guarantee scheme for providing guarantees to the loans/portfolios which are being extended to micro enterprises by Banks, N BFCs and MFIs
8) Creating a good architecture of Last Mile Credit Delivery to micro businesses under the scheme of Pradhan Mantri MUDRA Yojana.
Which sector can get benefits of Pradhan Mantri Mudra Yojana:
Land Transfer Scheme and Activities: In this sector the support will be available for purchase of transport vehicles for goods and personal transport such as auto rickshaw, small goods transport vehicle, 3 wheelers, e-rickshaw, passenger cars, taxis, etc.
Community, Social & Personal Service Activities: such as saloons, beauty parlours, gymnasium, boutiques, tailoring shops, dry cleaning, cycle and motorcycle repair shop, DTP and Photocopying Facilities, Medicine Shops, Courier Agents, etc.
Food Products Sector: In this sector the support will be available for undertaking activities such as papad making, achaar making, jam/jelly making, agricultural produce preservation at rural level, sweet shops, small service food stalls and day to day catering / canteen services, cold chain vehicles, cold storages, ice making units, ice cream making units, biscuit, bread and bun making, etc.
Textile Products Sector/Activity: In this sector the support will be available for undertaking activities such as handloom, powerloom, chikan work, zari and zardozi work, traditional embroidery and hand work, traditional dyeing and printing, apparel design, knitting, cotton ginning, computerized embroidery, stitching and other textile non garment products such as bags, vehicle accessories, furnishing accessories, etc.
Eligibility for PM Mudra Yojana
Eligibility Criteria under PMMY: Under Pradhan Mantri Mudra Yojana, the loan upto Rs. 10 lakh would be available only for small entrepreneurs. The loan under the PMMY would only available for small businesses but the needy cannot get a loan for buying vehicle, house or for education purpose under the yojana. The minimum age to apply for loan under Pradhan Mantri Mudra Yojana is 18 year.
Mudra Loan cannot be taken for personal requirement, education purpose, buying personal car or bike.
Refinance Scheme for RRBs/Co-operative Banks:
Enhancing liquidity of RRBs / Scheduled Co-operative Banks by refinancing loan extended to micro enterprises as per MSMED Act with beneficiary loan size up to Rs. 10 lakh per enterprise / borrower for manufacturing and service sector enterprises.
Mahila Uddyami Scheme
Timely and adequate financial support to the MFIs, for on lending to women/group of women/JLGs/SHGs for creation of qualifying assets as per RBI guidelines towards setting up/running micro enterprises as per MSMED Act and non-farm income generating activities.
Business loans for Traders and Shopkeepers: The borrowers will get timely and adequate financial support for running their shops/trading & business activities/service enterprises and non-farm income. Under Pradhan Mantri Mudra Yojan, a loan size of Rs. 10 lakh would be provided by Mudra Bank.
Equipment Finance Scheme for Micro Units: Mudra bank would provide timely and adequate financial support of Rs. 10 lakh to individual who are planning to set up micro enterprises by purchasing necessary machinery/equipments.
Products for the Transport Sector: Mudra Bank would provide refinance for innovative products in the Small Road Transport Sector whereby constraints such as lack of capital requirements of the micro unit for meeting margin money for asset acquisition is met by the financing NBFC/MFI.
Partners of Mudra
There are 120 partners at present, including 27 Public Sector Banks, 17 Private Sector Commercial Banks, 29 RRBs and 47 NBFCs/MFIs
1 A hassle free and flexible credit product.
2 Meets the working capital needs of the unit.
3 Issued by a Bank either directly or in association with MFIs.
4 Issued as ‘RuPay’ Debit Card.
5 Cash can be withdrawal from any ATM or purchases from merchandise using POS machines.
Image of Mudra Card:
Helpline for enquiring on Pradhan Mantri Mudra Yojana:
Email: [email protected]
for information visit http://mudra.org.in/
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