Pradhan Mantri Mudra Yojana (PMMY)

About PM Mudra Yojna (PMMY)

Launched in 2015, for providing loans up to Rs. 10 lakh to the non-corporate, non-farm small/micro-enterprises.
Funding Provision:
- MUDRA stands for Micro Units Development & Refinance Agency Ltd., is a financial institution set up by the Government.
- These loans are given by Commercial Banks, RRBs, Small Finance Banks, MFIs and NBFCs.
- MUDRA does not lend directly to micro-entrepreneurs/individuals.
- Three products are created under MUDRA, as per the stage of growth and funding needs of the beneficiary micro unit.
  - Shishu: up to ₹ 50,000.
  - Kishore: ₹ 50,000 – ₹ 5 lakh.
  - Tarun: ₹ 5 lakh – ₹ 10 lakh.
  - Tarun Plus: ₹10 lakh – ₹20 lakh (It would be available to entrepreneurs who have availed and successfully repaid previous loans under the Tarun category).
- The guarantee coverage loans for amounts up to ₹20 lakh will be provided under the Credit Guarantee Fund for Micro Units (CGFMU).
  - CGFMU is a government-backed initiative aimed at providing credit guarantee coverage to loans extended to micro-enterprises and small businesses.
  - Established in 2015, this fund is managed by the National Credit Guarantee Trustee Company Ltd. (NCGTC).
- Loans under the MUDRA scheme are collateral-free loans.