The Pradhan Mantri MUDRA Yojana (PMMY) has been a game-changer for micro-enterprises in India since its inception in 2015. The scheme aimed to facilitate easy collateral-free micro-credit of up to ₹10 lakh to non-corporate, non-farm small and micro entrepreneurs for income-generating activities. As we celebrate the 8th anniversary of providing financial inclusion through the pillars of Pradhan Mantri MUDRA Yojana (PMMY), let us glance through some of the major features and achievements of the Scheme:
As we celebrate the 8th anniversary of providing financial inclusion through the pillars of Pradhan Mantri MUDRA Yojana (PMMY), let us glance through some of the major features and achievements of the Scheme:
PMMY Scheme Details
Pradhan Mantri Mudra Yojana (PMMY) is an initiative launched by the Indian government to provide financial assistance to micro and small enterprises (MSEs) in the country. The scheme was launched on 8th April 2015, with an aim to provide financial support to the unfunded section of the society and promote entrepreneurship among the youth.
Here are the key details of the PMMY Scheme:
- Objective The primary objective of the scheme is to promote entrepreneurship among the youth, and provide financial support to small businesses in the country.
- Eligibility All Indian citizens with a business plan for a non-farm sector income-generating activity can avail of the Scheme. The scheme is applicable to small and micro enterprises, such as vendors, shopkeepers, artisans, and small manufacturing units.
- Loan Types There are three categories of loans available under the Scheme:
a. Shishu: Loans up to Rs. 50,000 b. Kishor: Loans from Rs. 50,000 to Rs. 5 lakh c. Tarun: Loans from Rs. 5 lakh to Rs. 10 lakh
- Loan Disbursement Loans under the PMMY Scheme are provided by banks and financial institutions. The loans are disbursed in the form of a term loan or a working capital loan, depending on the nature of the business.
- Interest Rates The interest rates for loans under the PMMY Scheme are set by the lending institutions. However, the government has set a maximum interest rate of 14% per annum for loans up to Rs. 50,000, and 12% per annum for loans above Rs. 50,000.
- Repayment The repayment period for loans under the PMMY Scheme can range from 3 to 5 years, depending on the nature of the business and the loan amount.
- Application Process Individuals can apply for loans under the PMMY Scheme through the lending institutions, such as banks and financial institutions. The application process is simple, and the applicants are required to provide basic information about their business and income.
- Benefits The PMMY Scheme provides several benefits to micro and small enterprises, such as:
a. Easy access to finance b. Low-interest rates c. Flexible repayment options d. Promotes entrepreneurship
In conclusion, the PMMY Scheme is a great initiative launched by the Indian government to provide financial assistance to micro and small enterprises. It has been successful in promoting entrepreneurship among the youth and has provided easy access to finance to small businesses in the country.
