Context:
Pradhan Mantri Mudra Yojana (PMMY) loan limit increased to 20 lakh
Recent changes:
- Introduction of ‘Tarun Plus’ Category –
- Loan Amount – Loans above ₹10 lakh and up to ₹20 lakh.
- Eligibility – Available to entrepreneurs who have availed and successfully repaid previous loans under the Tarun category.
- Guarantee Coverage – Loans up to ₹20 lakh will be covered under the Credit Guarantee Fund for Micro Units (CGFMU).
- CGFMU may approve a list of institutions or their schemes for which the guarantee cover will be available or unavailable.
- CGFMU was set up in 2016 under the National Credit Guarantee Trustee Company Ltd., a wholly-owned company of the Government of India.
Pradhan Mantri Mudra Yojana (PMMY):
- Launch Year – 2015
- Objective – Facilitate easy, collateral-free microcredit up to ₹10 lakh.
- Who Can Apply – Any Indian citizen with a business plan for non-corporate, non-farm income-generating activities such as manufacturing, processing, trading, or service sector.
- Funding –
- Provided by MUDRA (Micro Units Development & Refinance Agency Ltd.)
- Provided to financial institutions like Banks, Non-Banking Financial Institutions (NBFCs), and Micro Finance Institutions (MFIs).
- Loan Categories –
- Shishu – Loan Amount up to ₹50,000.
- Kishor – Loan Amount above ₹50,000 and up to ₹5 lakh.
- Tarun – Loan Amount above ₹5 lakh and up to ₹10 lakh.
Source: PIB
Previous Year Question
Pradhan Mantri MUDRA Yojana is aimed at:
[UPSC Civil Service Exam – 2016 Prelims]
(a) bringing the small entrepreneurs into formal financial system
(b) providing loans to poor farmers for cultivating particular crops
(c) providing pensions to old and destitute persons
(d) funding the voluntary organizations involved in the promotion of skill development and employment generation
Answer: (a)
