Pradhan Mantri Mudra Yojana: 1.12 crore employment generated

The Ministry of Finance recently announced that nearly Rs 15 lakh crores have been sanctioned under Pradhan Mantri MUDRA Yojana (PMMY).

What are the achievements of PMMY?

  • More than 28 crore 68 lakh loans have been sanctioned since the launch of Pradhan Mantri MUDRA Yojana.
  • Of the total loans provided, 68% were provided to women entrepreneurs.
  • 51% of the total loans provided under the Pradhan Mantri MUDRA Yojana were provided to SC, ST and OBC borrowers.
  • The Pradhan Mantri MUDRA Yojana has helped to generate 1 crore 12 lakh net additional employment between 2015 and 2018. Of this, women accounted for 62%.

Pradhan Mantri MUDRA Yojana

  • The PMMY was launched in 2015.
  • The full form of MUDRA is Micro Units Development and Refinance Agency Limited.
  • The main objective of Pradhan Mantri MUDRA Yojana was to refinance collateral free loans given by the lenders to small borrowers.
  • The scheme shall lend between Rs 50,000 and Rs 10 lakhs.
  • The PMMY loans are available to non-agricultural activities up to Rs 10 lakhs.
  • PMMY loans are available for agricultural activities as well. This includes Poultry, Dairy, Bee Keeping and farming.

Interest Subvention Scheme for PMMY

  • In June 2020, the Government of India approved a 2% interest subsidy scheme for Shishu loan account holders under Pradhan Mantri Mudra Yojana. Shishu loans are those loans that provide funds upto Rs 50,000 under PMMY. The other two categories are Kishor and Tarun. The fund limit of Kishor loans is between Rs 50,000 and Rs 5 lakhs. Tarun loans are those loans that provide funds upto Rs 10 lakhs.
  • The Interest Subvention Scheme was launched to help small businesses survive the difficulties created by lockdown due to COVID-19.
  • The scheme was implemented through Small Industries Development Bank of India (SIDBI).
  • The estimated cost of the scheme was Rs 1,542 crores.
  • The scheme was to run for a period of one year.




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