MUDRA scheme

News Highlights

• Pradhan Mantri Mudra Yojana has completed its seven years, in this period it is estimated that banks have extended loans of Rs18.6 trillion to about 34.4 crore beneficiaries.

• Among the beneficiaries, 68 % of the mudra account services were availed by women and 22 % of the loans were disbursed to new entrepreneurs.
• Also, as many as 51 % of total sanctioned loans have gone to beneficiaries belonging to SC/ST/OBC categories which indicates that the scheme also stands for social justice.

Pradhan Mantri MUDRA Yojna

• PMMY was launched in 2015 with the objective to help small-scale businesses expand and attain success.

• MUDRA stands for Micro-units development and refinances agency under which loans are offered to the businesses ranging from Rs.50,000 to Rs.10 lakh on the basis of the Sishu, Kishor, and Tarun categories such as

• Both the profit and non-profit sector companies can avail a loan under this scheme through various last-mile financial institutions like Banks, Non-banking financial companies(NBFCs), and Microfinance institutions(MFIs).
• It does not lend directly to entrepreneurs and also provides collateral-free loans to businesses.
• With these attributes, the scheme has benefitted a large section of people of society and helped and empowered them for their business activity.