Pradhan Mantri Mudra Yojana

✦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

3000

Funding Ratio (Centre:State): Refinance provided by MUDRA Ltd. (subsidiary of SIDBI) to Banks/NBFCs/MFIs.

Historical Context

Launched on April 8, 2015, to fund the 'unfunded' micro-enterprises.