Pradhan Mantri MUDRA Yojana


    In News

    Bad loans under the Pradhan Mantri MUDRA Yojana for all banks (public, private, foreign, state cooperative, regional rural, and small finance) since the launch of the scheme on April 8, 2015, added up to Rs 46,053.39 crore as on June 30, 2022.

    About Pradhan Mantri MUDRA Yojana (PMMY)

    • It is a scheme launched by the Hon’ble Prime Minister on April 8, 2015, for providing loans up to 10 lakh to non-corporate, non-farm small/micro enterprises. 
      • These loans are classified as MUDRA loans under PMMY. 
    • Major aspects: Under PMMY loans are provided up to Rs. 10 Lakh through Member Lending Institutions (MLIs) viz; Banks, Non-Banking Financial Companies (NBFCs), Micro Financial Institutions (MFIs), other financial intermediaries, in three categories namely, ‘Shishu’, ‘Kishore’ and ‘Tarun’ which signifies the stage of growth or development and funding needs of the borrowers.
      • Shishu: covering loans up to  Rs. 50,000/-
      • Kishore: covering loans above  Rs. 50,000/- and up to Rs. 5 lakh
      • Tarun: covering loans above  Rs. 5 lakh and up to Rs. 10 lakh
    • Objectives: To signify the stage of growth/development and funding needs of the beneficiary micro unit/entrepreneur and also provide a reference point for the next phase of graduation/growth.

    Source: IE