Pradhan Mantri Mudra Yojana(PMMY)

Pradhan Mantri Mudra Yojana(PMMY)

News: As per the sample survey conducted at the national level by Ministry of Labour and Employment to assess employment generation under PMMY, the scheme helped in generating 1.12 crore net additional employment during a period of approximately 3 years (2015 to 2018).

About:
 The scheme was launched in 2015 and it provides collateral-free institutional loans up to Rs. 10 lakhs for small business enterprises.
 The funding is provided by Member Lending Institutions (MLIs) i.e. Scheduled Commercial Banks (SCBs), Regional Rural Banks (RRBs), Non-Banking Financial Companies (NBFCs) and Micro Finance Institutions (MFIs).
 The loan can be used for income-generating activities in the manufacturing, trading, services sector, and agriculture.
 Three types of loans are provided - Shishu (loans up to Rs. 50,000), Kishore (loans between Rs. 50,000 and Rs. 5 lakh) and Tarun (loans between Rs. 5 lakh and Rs. 10 lakh).

Key Findings:
 Out of 81 lakh loans given in the state of Rajasthan, over 52 lakh were given to women entrepreneurs in the last three financial years, which is 64% of all loans.

How has the scheme evolved over the years?
 The PMMY has been expanded over time:
 In 2016-17, the scheme was expanded to cover activities related to agriculture, such as fishing, dairy, and food processing.
 In 2017-18, loans for tractors and power tillers became eligible under PMMY and from 2018-19 onwards, loans for two-wheelers for commercial use were included in PMMY.
 Provision for online applications through udyamimitra portal.
 Nomination of Mudra Nodal Officers in PSBs.
 Some Public Sector Banks (PSBs) have put end-to-end digital lending for automated sanctions under PMMY.
 Intensive publicity campaigns by PSBs and Mudra Ltd. for increased visibility of the scheme amongst the stakeholders.