PM hit out at people ridiculing the Pradhan Mantri Mudra Yojana (PMMY) and said those who gave loans to big businessmen “over phone” never understood the power of microfinance.
MUDRA Scheme
- MUDRA (Micro Units Development and Refinance Agency) Scheme is a financial initiative launched by the Government of India in April 2015 to provide financial support to micro-enterprises in India.
- The scheme is designed to cater to the financial needs of the non-corporate, non-farm sector enterprises in the country.
- The objective of the scheme is to promote entrepreneurship, employment generation, and to provide access to finance to small and micro-businesses in India.
Range of loans
- The MUDRA scheme provides loans ranging from Rs. 50,000 to Rs. 10 lakhs to small and micro-businesses.
- These loans are provided through various financial institutions such as banks, microfinance institutions, and non-banking financial companies (NBFCs).
- The scheme also offers refinance support to these institutions.
| Category | Loan Amount |
| Shishu | Up to Rs. 50,000 |
| Kishore | Rs. 50,001 to Rs. 5 lakhs |
| Tarun | Rs. 5 lakhs to Rs. 10 lakhs |
Key features of the MUDRA scheme
- Refinance support: The scheme offers refinance support to various financial institutions, such as banks, microfinance institutions, and non-banking financial companies (NBFCs), to provide loans to small and micro-businesses.
- Employment generation: The scheme aims to promote entrepreneurship and employment generation in the country.
- Digitalization of financial transactions: The scheme has helped in promoting the digitalization of financial transactions.
- Focus on underprivileged and marginalized sections: The scheme aims to provide financial assistance to underprivileged and marginalized sections of the society, especially those belonging to the non-corporate, non-farm sector enterprises in the country.
- Simplified loan processing: The loan processing under the scheme is simplified and requires minimal documentation.
- No collateral requirement: The loans provided under the scheme do not require any collateral or security.
- Competitive Interest rate: The interest rate for the loans provided under the scheme is competitive and affordable.
