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PradhanMantri MUDRA Yojana (PMMY)

Posted on : 13 Dec 2019

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  • PradhanMantri Mudra Yojana (PMMY) is a flagship scheme of Government of India to “fund the unfunded” by bringing such enterprises to the formal financial system and extending affordable credit to them.
  • It enables a small borrower to borrow from all Public Sector Banks such as PSU Banks, Regional Rural Banks and Cooperative Banks, Private Sector Banks, Foreign Banks, Micro Finance Institutions (MFI) and Non-Banking Finance Companies (NBFC) for loans uptoRs 10 lakhs for non-farm income generating activities.
  • The scheme was launched on 8th April, 2015 by the Hon'ble Prime Minister.

Eligibility

  • Any Indian Citizen who has a business plan for a non-farm sector income generating activity such as manufacturing, processing, trading or service sector and whose credit need is less than Rs 10 lakh.
  • The citizen can approach either a Bank, MFI, or NBFC for availing of Micro Units Development & Refinance Agency Ltd. (MUDRA) loans under PradhanMantri Mudra Yojana (PMMY).

Types of loans provided

Under the aegis of PradhanMantri MUDRA Yojana, MUDRA has already created the following products / schemes.
 

  • Shishu : covering loans upto 50,000/-
  • Kishor : covering loans above 50,000/- and upto 5 lakh
  • Tarun : covering loans above 5 lakh and upto 10 lakh

Article Related Questions

  1. Consider the following statements regarding Pradhan Mantri MUDRA Yojana (PMMY).
    1.The loan under PMMY can be availed for both farm and non-farm sector income generating activity.
    2.There is no subsidy for the loan given under PMMY.
    Which of the following statement is/are correct?

  2. 1.1 only

    2.2 only

    3.Both 1 and 2

    4.Neither 1 nor 2

    Right Ans : 2 only

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