Menu
Economy

Pradhan Mantri Mudra Yojana (PMMY)

Read in:
  • Why in the News? The Pradhan Mantri Mudra Yojana (PMMY) successfully completed 11 glorious years of implementation on April 8, 2026.
  • Progress: More than 57 crore loans have been sanctioned under this scheme so far, with a cumulative amount of ₹40.07 lakh crore disbursed.

    • Strengthening financial inclusion, in the fiscal year 2024-25, approximately 60% of the total accounts belonged to women and nearly 21% to new entrepreneurs.

About PMMY

  • Launch: April 8, 2015.

  • Nodal Ministry: Ministry of Finance, Government of India.

  • Main Objective: "Funding the Unfunded," which is one of the three pillars of financial inclusion.

Key Features:

  • Nature of Credit: The scheme offers collateral-free loans up to a limit of ₹20 lakh to support manufacturing, trading, and service sectors, including allied agricultural activities.

  • Loan Categories: Mudra loans are primarily provided under 4 categories: Shishu, Kishore, Tarun, and Tarun Plus.

    • Tarun Plus: Announced in the Budget 2024-25, this special category is for entrepreneurs who have successfully repaid their 'Tarun' category loans.

  • Implementation Framework: The scheme operates through a three-tier structure:

    1. Micro Units Development and Refinance Agency Ltd. (MUDRA)

    2. Member Lending Institutions (MLIs)

    3. Beneficiaries (Borrowers)

  • Interest Rate: Interest rates on loans are determined according to the guidelines issued by the RBI.

  • Scope: These loans cater to the working capital requirements of the manufacturing and service sectors, as well as allied agricultural activities such as dairy, poultry, and beekeeping.

SOURCE : PIB