Pardhan Mantri Mudra Yojana(PMMY)


The Pradhan Mantri Mudra Yojana (PMMY) is a flagship scheme launched by the Government of India to provide financial support to micro-enterprises and small businesses. The primary objective of the Mudra Yojana is to promote entrepreneurship, job creation, and economic development by facilitating access to credit for small business owners, especially those from marginalized and underserved communities.

Under the PMMY scheme, loans are provided to micro, small, and medium enterprises (MSMEs) through various financial institutions, including banks, non-banking financial companies (NBFCs), microfinance institutions (MFIs), and regional rural banks (RRBs). These loans are categorized into three schemes based on the loan amount:

  1. Shishu: Loans up to ₹50,000 are categorized under the Shishu scheme, which targets small businesses and entrepreneurs in their early stages of development. This scheme provides financial assistance for working capital, equipment purchase, and other business-related expenses.

  2. Kishore: Loans ranging from ₹50,001 to ₹5 lakh fall under the Kishore scheme, catering to businesses that have already established a presence and are looking to expand or diversify their operations. The Kishore scheme offers higher loan amounts and longer repayment periods to meet the growing needs of small enterprises.

  3. Tarun: Loans between ₹5,00,001 and ₹10 lakh are classified under the Tarun scheme, which targets larger and more established businesses seeking substantial financing for expansion, modernization, or diversification. The Tarun scheme provides flexible repayment options and customized loan solutions to meet the specific requirements of medium-sized enterprises.

The Pradhan Mantri Mudra Yojana aims to empower entrepreneurs, especially women, Scheduled Castes (SCs), Scheduled Tribes (STs), and Other Backward Classes (OBCs), by providing them with access to affordable credit and financial services. The scheme also emphasizes the importance of financial literacy, skill development, and capacity building to enhance the success and sustainability of small businesses.

Overall, the PMMY scheme plays a vital role in fostering entrepreneurship, promoting inclusive growth, and creating employment opportunities across diverse sectors of the economy. By facilitating access to credit and supporting the growth of small enterprises, the Mudra Yojana contributes to India's economic development and social progress.



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