Last Updated on June 9, 2023 by IGNOU Forum
Pradhan Mantri Mudra Yojana (PMMY) is a government-led financial inclusion scheme in India that aims to provide access to finance to small businesses and entrepreneurs. The scheme was launched in 2015 by the Government of India and is administered by the Micro Units Development and Refinance Agency (MUDRA).
Under PMMY, small businesses and entrepreneurs can apply for loans of up to INR 10 lakh (approximately $14,000) from participating banks, non-banking financial companies (NBFCs), and microfinance institutions (MFIs). The loans are provided at competitive interest rates and can be used for a variety of purposes, such as starting a new business, expanding an existing business, purchasing equipment or machinery, or meeting working capital needs.
The PMMY is targeted at small businesses and entrepreneurs in the non-corporate, non-farm sector, such as small traders, artisans, and micro-enterprises. It is designed to help these businesses and entrepreneurs access the credit they need to grow and succeed.
If you are a small business owner or entrepreneur in India and are interested in applying for a loan under PMMY, you can contact a participating bank, NBFC, or MFI for more information.
Pradhan Mantri Mudra Yojana – Key Points
Here are some key points about Pradhan Mantri Mudra Yojana (PMMY):
- It is a government-led financial inclusion scheme that aims to provide access to finance to small businesses and entrepreneurs in India.
- Under PMMY, small businesses and entrepreneurs can apply for loans of up to INR 10 lakh (approximately $14,000) from participating banks, non-banking financial companies (NBFCs), and microfinance institutions (MFIs).
- The loans provided under PMMY are intended for a variety of purposes, such as starting a new business, expanding an existing business, purchasing equipment or machinery, or meeting working capital needs.
- PMMY is targeted at small businesses and entrepreneurs in the non-corporate, non-farm sector, such as small traders, artisans, and micro-enterprises.
- If you are a small business owner or entrepreneur in India and are interested in applying for a loan under PMMY, you can contact a participating bank, NBFC, or MFI for more information.
Pradhan Mantri Mudra Yojana – Aim
The aim of Pradhan Mantri Mudra Yojana (PMMY) is to provide access to finance to small businesses and entrepreneurs in India, particularly those in the non-corporate, non-farm sector. This sector includes small traders, artisans, and micro-enterprises, which often have difficulty accessing credit from traditional financial institutions.
PMMY aims to address this problem by providing small businesses and entrepreneurs with access to affordable loans of up to INR 10 lakh (approximately $14,000) from participating banks, non-banking financial companies (NBFCs), and microfinance institutions (MFIs). The loans can be used for a variety of purposes, such as starting a new business, expanding an existing business, purchasing equipment or machinery, or meeting working capital needs.
By providing small businesses and entrepreneurs with access to credit, PMMY aims to help them grow and succeed, and contribute to the overall economic development of the country.
Pradhan Mantri Mudra Yojana – Achievements
Since its launch in 2015, Pradhan Mantri Mudra Yojana (PMMY) has achieved significant success in providing access to finance to small businesses and entrepreneurs in India. Some of the key achievements of PMMY include:
- Over INR 3.5 lakh crore (approximately $50 billion) in loans have been disbursed to over 10 crore (100 million) small businesses and entrepreneurs under PMMY as of December 2020.
- The scheme has helped to create employment for millions of people, particularly in rural and semi-urban areas.
- PMMY has received positive feedback from small business owners and entrepreneurs who have benefited from the scheme, with many reporting that it has helped them to grow and expand their businesses.
- PMMY has received recognition and accolades from various national and international organizations, including the World Bank, which has praised the scheme for its impact on the lives of small businesses and entrepreneurs in India.
Overall, PMMY has had a significant impact on the lives of small businesses and entrepreneurs in India, and has helped to drive economic development and growth in the country.
Eligibility Criteria for Pradhan Mantri Mudra Yojana
To be eligible for a loan under Pradhan Mantri Mudra Yojana (PMMY), you must:
- Be a small business owner or entrepreneur in India
- Have a viable business idea or plan
- Be able to demonstrate the ability to repay the loan
In addition, you must apply for the loan through a participating bank, non-banking financial company (NBFC), or microfinance institution (MFI). Each of these institutions may have their own eligibility criteria that you must meet in order to qualify for a loan under PMMY.
PMMY is targeted at small businesses and entrepreneurs in the non-corporate, non-farm sector, such as small traders, artisans, and micro-enterprises. If you are in this sector and are interested in applying for a loan under PMMY, you can contact a participating bank, NBFC, or MFI for more information. They will be able to advise you on the specific eligibility criteria and the documents you need to provide in order to apply for a loan.
How to Apply for Pradhan Mantri Mudra Yojana
If you are a small business owner or entrepreneur in India and are interested in applying for a loan under Pradhan Mantri Mudra Yojana (PMMY), you can follow these steps:
- Contact a participating bank, non-banking financial company (NBFC), or microfinance institution (MFI) near you. You can find a list of participating institutions on the MUDRA website (www.mudra.org.in).
- Discuss your business idea or plan with the bank, NBFC, or MFI, and ask about the loan products available under PMMY.
- Collect the required documents, which may include proof of identity, proof of address, proof of business ownership or partnership, business plan, and financial statements.
- Fill out the loan application form and submit it along with the required documents to the bank, NBFC, or MFI.
- Wait for the bank, NBFC, or MFI to review your application and make a decision. If your application is approved, you will receive the loan according to the terms and conditions agreed upon.
It is important to note that each participating institution may have its own eligibility criteria and application process for PMMY loans. You should contact the institution directly for more information on how to apply.
Pradhan Mantri Mudra Yojana – FAQ
Here are some frequently asked questions about Pradhan Mantri Mudra Yojana (PMMY):
Who is eligible for a loan under PMMY?
To be eligible for a loan under PMMY, you must be a small business owner or entrepreneur in India, have a viable business idea or plan, and be able to demonstrate the ability to repay the loan.
How do I apply for a loan under PMMY?
To apply for a loan under PMMY, you must contact a participating bank, non-banking financial company (NBFC), or microfinance institution (MFI) and discuss your business idea or plan with them. You will need to collect the required documents, such as proof of identity, proof of address, proof of business ownership or partnership, business plan, and financial statements, and fill out the loan application form. The bank, NBFC, or MFI will review your application and make a decision on whether to grant the loan.
How much can I borrow under PMMY?
Under PMMY, you can borrow up to INR 10 lakh (approximately $14,000) from participating banks, NBFCs, and MFIs.
What can I use the loan for?
The loan provided under PMMY can be used for a variety of purposes, such as starting a new business, expanding an existing business, purchasing equipment or machinery, or meeting working capital needs.
Who administers PMMY?
PMMY is administered by the Micro Units Development and Refinance Agency (MUDRA), which is a government-owned organization that promotes the growth of small businesses and entrepreneurship in India.
