Launch Year: 2015
Type: Central Sector Scheme.
Objective: To empower small and micro-entrepreneurs by providing them with financial support.
Nodal Agency: Department of Financial Services, Ministry of Finance.
Beneficiaries: Entrepreneurs in the non-corporate, non-farm sector.
What are the Key Features of Pradhan Mantri MUDRA Yojana?
About: The aim of PMMY is to facilitate easy collateral-free micro-credit to non-corporate, non-farm small, and micro-entrepreneurs for income-generating activities.
MUDRA (Micro Units Development and Refinance Agency) was launched in 2015, to provide refinance support to financial institutions like banks, micro-finance institutions (MFIs), and non-banking financial companies (NBFCs).
It provides refinance, credit guarantee, and development support to financial institutions, helping them extend financial services to micro-enterprises in manufacturing, trading, and services.
Loan Limits Under Various Categories: The Pradhan Mantri MUDRA Yojana (PMMY) offers loans under four distinct categories, each catering to different stages of business growth.
The loan limits for each category are as follows:
Shishu Category:
Loan Limit: Up to Rs 50,000
This category is designed for businesses that are in the initial phase of their operations and need minimal capital to start or maintain their activities.
Kishore Category:
Loan Limit: Rs 50,000 to Rs 5 lakh
The Kishore category supports businesses that are in the growth phase and require additional funding to expand their operations or increase their working capital.
Tarun Category:
Loan Limit: Rs 5 lakh to Rs 10 lakh
The Tarun category caters to well-established businesses that require larger loans to scale up their operations, increase production capacity, and expand their market reach.
Tarun Plus Category:
Loan Limit: Rs.10 lakh to Rs. 20 lakhs (Raised Union Budget 2024-25)
This newly introduced category provides additional financial support for businesses that have successfully repaid loans under the Tarun category and are looking to take their operations to the next level with higher funding needs.
Read more: Loan Write-Offs and NPA Reduction in PSBs
