{"id":161588,"date":"2025-04-09T20:18:14","date_gmt":"2025-04-09T14:48:14","guid":{"rendered":"https:\/\/pwonlyias.com\/stage\/?post_type=current-affairs&p=161588"},"modified":"2025-04-12T13:13:47","modified_gmt":"2025-04-12T07:43:47","slug":"10-years-of-the-pmmy","status":"publish","type":"current-affairs","link":"https:\/\/pwonlyias.com\/stage\/current-affairs\/10-years-of-the-pmmy","title":{"rendered":"10 years of the Pradhan Mantri MUDRA Yojana (PMMY)"},"content":{"rendered":"

India marks <\/span>10 years of the Pradhan Mantri MUDRA Yojana (PMMY)<\/b> on 8 April <\/span>2025<\/b>.\u00a0<\/span><\/p>\n

About Pradhan Mantri MUDRA Yojana (PMMY)<\/b><\/span><\/h2>\n
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  • Pradhan Mantri Mudra Yojana (PMMY) is a flagship <\/span>Central Sector Scheme<\/b> aimed at<\/span> funding the Unfunded micro enterprises and small businesses.<\/b>\n
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    • It was launched in<\/span> 2015 <\/b>to provide <\/span>collateral-free micro credi<\/b>t to small and micro entrepreneurs across India, <\/span>especially in the non-corporate and non-farm sectors.<\/b>\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
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      MUDRA Card and MUDRA MITRA Mobile Application<\/b><\/span><\/h2>\n

      About MUDRA Card<\/b><\/span><\/h4>\n
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      • Purpose: <\/b>It is an innovative credit product that enables <\/span>hassle-free access to credit for working capital needs.<\/b><\/span><\/li>\n
      • Functionality: <\/b>Acts as a <\/span>RuPay debit card<\/b>; It is <\/span>usable at ATMs, POS machines, and online platforms.<\/b>
        \n<\/b>Overdraft Facility:<\/b> Offers a <\/span>flexible credit line repayable when surplus cash is available,<\/b> reducing interest burdens.<\/span><\/span><\/li>\n<\/ul>\n

        About MUDRA MITRA App<\/b><\/span><\/h4>\n
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        • Purpose:<\/b> Designed to provide <\/span>comprehensive information<\/b> about the <\/span>Micro Units Development and Refinance Agency Ltd. (MUDRA) <\/b>and its various <\/span>schemes<\/b> under PMMY.<\/span><\/span>\n
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          • Loan Guidance:<\/b> It will <\/span>guide<\/b> a loan seeker to <\/span>approach a Banker<\/b> in availing MUDRA loan under PMMY.<\/span><\/span><\/li>\n
          • Resources Access:<\/b> Provides <\/span>sample application forms <\/b>and details on loan categories (Shishu, Kishore, Tarun, Tarun Plus).<\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/th>\n<\/tr>\n<\/tbody>\n<\/table>\n

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            • Nodal Agency:<\/b> Department of Financial Services, <\/span>Ministry of Finance.<\/b><\/li>\n
            • Implementation Through:<\/b> PMMY is implemented through <\/span>MUDRA (Micro Units Development and Refinance Agency)<\/b>, which offers:\u00a0<\/span>\n
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              • Refinance support to banks, NBFCs, and MFIs,<\/span><\/li>\n
              • Credit guarantee as well as development and<\/span><\/li>\n
              • capacity-building support.<\/span><\/li>\n<\/ul>\n<\/li>\n
              • Loan Categories Under PMMY: <\/b>PMMY loans are structured into <\/span>four<\/b> categories based on business maturity:<\/span>\n
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                • Shishu Category: Loan Limit:<\/b> Up to \u20b950,000; For startups and businesses in their <\/span>initial stages.<\/b><\/li>\n
                • Kishore Category: Loan Limit:<\/b> \u20b950,000 to \u20b95 lakh; For businesses <\/span>in the growth phase<\/b> seeking additional capital.<\/span><\/li>\n
                • Tarun Category: Loan Limit:<\/b> \u20b95 lakh to \u20b910 lakh; For<\/span> established businesses <\/b>aiming to scale up operations.<\/span><\/li>\n
                • Tarun Plus Category<\/b> (Introduced in Union Budget 2024-25): <\/span>Loan Limit:<\/b> \u20b910 lakh to \u20b920 lakh; For businesses with a <\/span>good repayment record under the Tarun category,<\/b> looking for further expansion.<\/span><\/li>\n<\/ul>\n<\/li>\n
                • Eligible Borrowers: <\/b>The scheme covers a broad base of entrepreneurial entities, including: Individuals, Proprietary concerns, Partnership firms, Private and public limited companies, Other legal entities etc.<\/span><\/li>\n
                • Credit Guarantee Support: <\/b>The <\/span>Credit Guarantee Fund for Micro Units (CGFMU)<\/b> covers defaults, encouraging financial institutions to lend more.<\/span>\n
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                  • Credit Guarantee Fund for Micro Units (CGFMU)<\/b> is the <\/span>Trust Fund<\/b> set up by Government of India with the purpose of <\/span>guaranteeing payment against default<\/b> in Micro Loans extended to eligible borrowers by Banks\/ NBFCs\/ MFIs\/ Other Financial Intermediaries.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n

                    Need for the Pradhan Mantri MUDRA Yojana<\/b><\/span><\/h2>\n
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                    • Demographic Advantage: <\/b>India\u2019s demographic dividend<\/span> needed a platform <\/b>to turn young aspirations into enterprise.<\/span><\/li>\n
                    • Bridging the Credit Gap:<\/b> Millions of small entrepreneurs lacked access to formal, <\/span>collateral-free finance.<\/b><\/li>\n
                    • Promoting Inclusive Development:<\/b> Encouraging <\/span>grassroots entrepreneurship<\/b> is key to achieving inclusive growth, especially in rural and semi-urban areas.<\/span><\/li>\n
                    • Unlocking Entrepreneurial Potential:<\/b> There existed a <\/span>strong need to tap into the latent potential of small and micro entrepreneurs <\/b>who <\/span>lacked access to formal credit.<\/b><\/li>\n
                    • Catalyzing Self-Reliance:<\/b> A self-employed, self-sustained India aligned with the vision of <\/span>Atmanirbhar Bharat.<\/b><\/li>\n<\/ul>\n

                      Achievements of the Scheme<\/b><\/span><\/h2>\n