About Pradhan Mantri Mudra Yojana:
- It was launched in 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 can avail loans under this scheme.
- 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.10 lakh 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.
