Pradhan Mantri Mudra Yojana

Pradhan Mantri Mudra Yojana (PMMY) generated 1.12 crore net additional employment from 2015 to 2018.

According to the findings of an extensive survey undertaken at the national level by the Ministry of Labour and Employment (MoLE) to assess job creation under PMMY.
Over three years, the scheme contributed to the creation of 1.12 crore net extra jobs (i.e. from 2015 to 2018).

About
- PMMY is a scheme launched by The Prime Minister on April 8, 2015.
- It is to provide loans up to 10 lakh to non-corporate, non-farm small/micro enterprises.
- Under PMMY, these loans are categorised as MUDRA loans.
- Commercial banks, RRBs, Small Finance Banks, MFIs, and NBFCs make these loans.
Types of loans
- MUDRA developed three products, ‘Shishu,’ ‘Kishore,’ and ‘Tarun,’ based on the stage of growth and finance requirements of the beneficiary micro unit.
- Shishu: Loans up to Rs. 50,000 are covered.
- Kishore: Loans exceeding Rs. 50,000 and up to Rs. 5 lakh.
- Tarun: Loans beyond Rs. 5 lakh and up to Rs. 10 lakh.
This system provides loans with no collateral.

Funding the unfunded
- To make loans of up to ten lakh rupees to persons with a business plan to earn revenue from a non-farm activity such as:
  - Manufacturing
  - Processing
  - Commerce
  - The service sector needs more capital.
Reducing jobless economic growth
- By making financing available to micro-enterprises, we can assist in creating jobs and boost the general GDP.
Integration of the Informal economy into the Formal sector
- It will also assist India in expanding its tax base, as income from the informal sector is not taxed.
Monitoring and regulating the Micro Finance Institutions (MFI)
- The network of microfinance institutions will be monitored with the assistance of MUDRA bank, and new registrations will be completed.
Promoting financial inclusion
- PMMY expands on financial inclusion by aiming to give loans to micro-businesses at the final mile through technology solutions.

Land Transport Sector
- Loans to support the purchase of transport vehicles.
- These vehicles could be used to transport commodities or people.
- Types of Activities under that Sector include:
  - Auto-rickshaws, E- rickshaws, etc.
  - Passenger cars and taxis.
  - Small-goods transport vehicles.
  - Other three-wheelers.
Service Sector
- This includes community services, social services, or personal services.
- Types of Activities under that Sector include:
  - Hair and beauty salons, beauty parlours, etc.
  - Tailoring stores, boutiques, dry cleaning services, etc.
  - Gymnasium, Athletic training, medical shops, etc.
  - Garage, Cycle & motorcycle repair centres, etc.
  - Other services like photocopying shops, courier agencies, etc.
Food Product Sector
- Support for small-scale food industries.
- Types of Activities under that Sector include:
  - Jams/jellies and other agricultural produce/preservation methods.
  - Sweet shops, small service food centres, etc.
  - Everyday catering services, canteens, etc.
  - Bakeries and Baked products manufacturing.
Textile Sector
- Assisting micro textile enterprises that make garments and non-garment products.
- Types of Activities under that Sector include:
  - Handloom and power loom industry
  - Handwork industry like embroidery, chikan work, dyeing and printing, knitting, etc.
  - Mechanical or computerised stitching for garments and non-garments.
  - Production of automobile and furnishing accessories, etc.

Provision for online applications via the Udyamimitra and other portals.
Under PMMY, certain public sector banks (PSBs) have developed end-to-end digital lending for automated sanctions.
PSBs and Mudra Ltd. have engaged in substantial public relations operations to promote stakeholder knowledge of the plan.
Mudra Nodal Officers nominate PSBs.
PSBs’ PMMY and other performances are evaluated regularly.

Pic Courtesy: The Indian Wire

Content Source: PIB