PMMY: The Narendra Modi government at the Center has introduced various schemes to provide financial support for business ventures. One such initiative is the Pradhan Mantri Mudra Yojana, which offers loans of up to Rs 20 lakh to aspiring entrepreneurs. These loans are disbursed through banks, non-banking financial companies (NBFCs), microfinance institutions (MFIs), and other financial entities. Let us explore this scheme in detail.
Pradhan Mantri Mudra Loans are categorized into four distinct groups: Shishu, Kishor, Tarun, and the newly introduced Tarun Plus. The Shishu category offers loans up to Rs 50,000. The Kishor category provides loans exceeding Rs 50,000 and reaching up to Rs 5 lakh. The Tarun category encompasses loans from over Rs 5 lakh to Rs 10 lakh, while the Tarun Plus category extends loans ranging from Rs 10 lakh to Rs 20 lakh.
What are these loans intended for?
These loans are designed to fulfill both term funding and working capital needs across various sectors, including manufacturing, trading, and services, as well as agriculture-related activities such as poultry, dairy, and beekeeping. The interest rates are determined by the guidelines set forth by the Reserve Bank of India (RBI), and the repayment terms for working capital facilities are flexible.
Over the past decade, the Pradhan Mantri Mudra Yojana has facilitated the disbursement of Mudra loans exceeding Rs 33.65 lakh crore through 52.37 crore accounts. Specifically, Rs 8.49 lakh crore has been allocated under the Shishu category, Rs 4.90 lakh crore under the Kishor category, and Rs 0.85 lakh crore under the Tarun category.
How to Apply for a PM Mudra Loan?
To apply, visit the nearest government or private bank, Regional Rural Bank (RRB), Non-Banking Financial Company (NBFC), or microfinance institution.
Complete a straightforward application form that outlines your business details.
Ensure you bring your Aadhaar card, PAN card, relevant business documents, and a passport-sized photograph.
The loan will be approved following the verification of the submitted bank documents.
For online applications, visit: www.udyamimitra.in
Women represent 68 percent of all Mudra loan recipients, highlighting the scheme’s significant impact on promoting women-led businesses nationwide. From FY16 to FY25, the average loan amount disbursed per woman increased at a compound annual growth rate (CAGR) of 13 percent, reaching Rs 62,679, while the incremental deposit amount per woman rose at a CAGR of 14 percent to Rs 95,269.
In regions where a higher number of loans have been allocated to women, there has been a notable increase in employment generation through small businesses (MSMEs) operated by women. This indicates that targeted financial support for women is highly effective in enhancing their economic status and employment rates.