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All You Need To Know About Pradhan Mantri MUDRA Yojana

· Mudra Loan
Pradhan Mantri Mudra Loan Yojana

PMMY or Pradhan Mantri Mudra Yojana is a government scheme that offers credit facility to Micro and Small enterprises up to Rs. 10 lakhs.

The enterprises necessarily should be non-farm and non-corporate micro and small enterprises. Under the Pradhan Mantri Loan scheme, the loans are offered by banks, NBFCs, MFIs, RRBs, etc.

What is MUDRA Yojana?

MUDRA scheme provides financial support to micro-enterprises, including manufacturing units, food support units, and small units. The basic motive of MUDRA yojana is to provide financial assistance to small business units that are engaged in trading, manufacturing, and services sectors.

 

The scheme was proposed to include people into the banking system. Typically, these business owners include vendors, artisans, repair shop owners, and other such small scale industries. Notably, these small scale industries employ approximately ten crore Indians.

Some Important Facts About MUDRA Yojana


The following are some features and characteristics of PMMY:

  • The business loan amount offered under the Yojana includes:
    • Shishu: loan up to Rs. 50,000
    • Kishor: loan from Rs. 50,000 to Rs. 5,00,000
    • Tarun: loan from Rs. 5,00,000 to Rs. 10,00,000Any business owner who is the resident of India and doesn’t have any default on loan repayment history can apply for MUDRA loan. The other MUDRA loan eligibility includes the firms to be non-farm and small enterprises.
    • The small business loan amount can be used for any business purpose. It is offered for various business purposes and to carry out activities that include manufacturing, services, and trading sectors.
    • The interest rates for the scheme are very nominal and based on the loan amount. The rates also vary depending on the bank from where the loan is availed.
    • The maximum tenure for which a business owner can avail MUDRA loan extends up to 5 years. However, the borrower can also avail the facility for a shorter period depending on his requirement.

The key MUDRA yojana offering include micro-credit scheme, Mahila uddyami yojana (women enterprise programme), refinance scheme for banks, MUDRA card, credit guarantee fund, equipment finance scheme, and credit to micro-enterprises.


In the end, one can conclude that the MUDRA scheme has offered a lifeline to micro and small enterprises. It supports and promotes the small businesses in marketing and promotional activities.