Pradhan Mantri Mudra Yojana (PMMY)

Pradhan Mantri Mudra Yojana (PMMY): Provides loans up to ₹10 lakh to non-corporate, non-farm small/micro-enterprises.

The Pradhan Mantri Mudra Yojana (PMMY) is a flagship scheme launched by the Government of India on April 8, 2015, to provide financial support to micro-enterprises and promote entrepreneurship among non-corporate, non-farm small/micro-enterprises (NCSMMEs). The term "Mudra" stands for Micro Units Development and Refinance Agency.

### Objectives of PMMY:

1. **Financial Inclusion**: To promote financial inclusion by extending credit facilities to small entrepreneurs who do not have access to traditional banking channels.

2. **Encouraging Entrepreneurship**: To foster entrepreneurship and self-employment among individuals, particularly those from marginalized sections of society.

3. **Job Creation**: To generate employment opportunities by supporting small businesses and micro-enterprises, thereby contributing to economic growth and poverty alleviation.

### Key Features of PMMY:

1. **Three Categories of Loans**: PMMY offers loans under three categories, namely Shishu, Kishor, and Tarun, based on the stage of growth and funding requirements of the enterprise.

   - **Shishu**: Loans up to ₹50,000 for businesses in the initial stages.

   - **Kishor**: Loans ranging from ₹50,000 to ₹5 lakh for established businesses looking to expand.

   - **Tarun**: Loans ranging from ₹5 lakh to ₹10 lakh for well-established businesses seeking further growth.

2. **Collateral-free Loans**: PMMY loans are collateral-free, making them accessible to small entrepreneurs who may not have substantial assets to offer as security.

3. **Interest Rates**: Interest rates for PMMY loans are competitive and determined by individual lending institutions, usually ranging from around 9% to 12%.

4. **Loan Repayment Period**: The repayment period for PMMY loans varies depending on the category of loan and the repayment capacity of the borrower. It typically ranges from 3 to 5 years.

5. **Facilitation and Support**: PMMY loans are disbursed through various financial institutions such as banks, non-banking financial companies (NBFCs), and microfinance institutions (MFIs). The government provides support and facilitation for loan applications through these institutions.

6. **Online Application Process**: Applicants can apply for PMMY loans online through the official Mudra portal or through participating lending institutions.

### Achievements of PMMY:

- Since its launch, PMMY has facilitated the disbursal of millions of loans to micro-enterprises across various sectors, contributing significantly to job creation and economic development.

- PMMY has played a crucial role in empowering small entrepreneurs, especially women, and those from disadvantaged backgrounds, by providing them with access to formal credit and financial resources.

- The scheme has helped in fostering a culture of entrepreneurship and self-reliance, driving innovation and growth in the MSME (Micro, Small, and Medium Enterprises) sector.

The Pradhan Mantri Mudra Yojana (PMMY) has emerged as a key initiative to support small businesses and micro-enterprises, enabling them to realize their full potential and contribute to India's economic growth and development.