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Pradhan Mantri Mudra Yojana — Govt Scheme for UPSC | Vaidra
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Pradhan Mantri Mudra Yojana

Ministry of FinanceactivefinancialLaunched: 2015-04-08

About the Scheme

PM Mudra Yojana (PMMY) provides loans up to ₹20 lakh to non-corporate, non-farm micro/small enterprises. Completed 10 years in April 2025. Cumulative: 52+ crore loans; ₹32.61 lakh crore disbursed. Budget 2024-25 introduced new Tarun Plus category (₹10-20 lakh). 68-70% women beneficiaries.

Target Beneficiaries: 52+ crore loans; ₹32.61 lakh crore disbursed since 2015; 68-70% women beneficiaries; MSMEs, small traders, artisans, shopkeepers

Implementing Agency: Public Sector Banks, Private Sector Banks, Regional Rural Banks, Cooperative Banks, Micro Finance Institutions (MFIs), Non-Banking Financial Companies (NBFCs)

Official Website →

✦Key Features

  • Shishu: loans up to ₹50,000; Kishore: ₹50,001-5 lakh; Tarun: ₹5-10 lakh; Tarun Plus: ₹10-20 lakh (Budget 2024-25)
  • No collateral required for Shishu and Kishore loans
  • 52+ crore loans sanctioned; ₹32.61 lakh crore disbursed cumulatively since 2015
  • 68-70% women beneficiaries; special focus on SC/ST/OBC entrepreneurs
  • Mudra Card (RuPay debit card) for working capital up to ₹10,000
  • Credit Guarantee Fund for Micro Units (CGFMU) provides guarantee cover
  • Tarun Plus category introduced Budget 2024-25 — for repeat Tarun borrowers

✓Eligibility Criteria

  • Indian citizens.
  • Individuals engaged in non-farm sector income-generating activities.
  • Micro and small enterprises including proprietorships, partnerships, and small companies.
  • Applicants must not be defaulters to any bank or financial institution.

★Benefits

  • Access to formal institutional credit for micro-enterprises.
  • Support for business expansion, modernization, and working capital needs.
  • Promotion of entrepreneurship and self-employment.
  • Financial inclusion for marginalized and underserved sections of society.

▶Application Process

  • Approach a bank, MFI, or NBFC that offers Mudra loans.
  • Fill out the Mudra loan application form.
  • Submit the required documents along with the business proposal.
  • Undergo the bank's assessment and verification process.
  • Upon approval, the loan amount is sanctioned and disbursed.

₹ Budget Allocation

0

UPSC Relevance

GS Paper: GS3

Prelims Relevance8%
Mains Relevance9%

Syllabus Tags

MSMEFinancial InclusionEntrepreneurshipSelf EmploymentGS3