About the scheme

• Pradhan Mantri Mudra Yojana (PMMY) is a flagship scheme of Government of India to “fund the unfunded” by bringing such enterprises to the formal financial system and extending affordable credit to them.
• Launched in 2015 to promote entrepreneurship, PMMY provides loans upto Rs. 10 lakh to the non-corporate, non-farm small/micro enterprises. 
• Under PMMY collateral free loans of upto Rs. 10 Lakh are extended by Member Lending Institutions (MLIs) viz Scheduled Commercial Banks, Regional Rural Banks (RRBs), Small Finance Banks (SFBs), Non Banking Financial Companies (NBFCs), Micro Finance Institutions (MFIs) etc.
• The loans are given for income generating activities in manufacturing, trading and services sectors and for activities allied to agriculture.
• Mudra loans are offered in three categories namely, ‘Shishu’, ‘Kishore’ and ‘Tarun’ which signifies the stage of growth or development and funding needs of the borrowers:-
  • Shishu : covering loans upto  Rs. 50,000/-
  • Kishore : covering loans above  Rs. 50,000/- and upto Rs. 5 lakh
  • Tarun : covering loans above  Rs. 5 lakh and upto Rs. 10 lakh
• With an objective to promote entrepreneurship among the new generation aspiring youth, it is ensured that more focus is given to Shishu Category loans and then Kishore and Tarun categories.

Achievements of this Scheme (As on March 2021)

• More than 28.68 crore loans for an amount of Rs 14.96 lakh crore have been sanctioned since launch of the scheme 
• The average ticket size of the loans is about Rs 52,000/-
• 88% of the loans are of ‘SHISHU’ category
• Almost 24% of the loans have been given to New entrepreneurs
• About 68% of the loans have been given to women entrepreneurs
• About 51% of the loans have been given to SC/ST/OBC borrowers.
• About 11% of the loans have been given to Minority community borrowers.
• As per a survey conducted by the Ministry of Labour and Employment, PMMY helped in generating 1.12 crore net additional employment from 2015 to 2018. Out of the 1.12 crore of estimated increase in employment, Women accounted for 69 lakh (62%).

Why in News?

• The Pradhan Mantri Mudra Yojana (PMMY) has sanctioned over 38.4 crore loans amounting to Rs 21.5 lakh crore since the launch.

https://www.financialexpress.com/industry/sme/msme-fin-mudra-scheme-rs-21-5-lakh-crore-loans-sanctioned-since-launch-says-economic-survey/2966231/