30 cr MUDRA Yojana loans for women entrepreneurs: What is Pradhan Mantri MUDRA Yojana?

Pradhan Mantri MUDRA Yojana (PMMY) is a scheme launched by Prime Minster Narendra Modi in 2015 to provide loans up to Rs 10 lakh to non-corporate, non-farm small/micro enterprises.

By: Express Web Desk

Updated: February 1, 2024 06:10 PM IST

2 min read

"30 crore MUDRA Yojana loans have been given to woman entrepreneurs," Finance Minister Nirmala Sitharaman said. (File)

Finance Minister Nirmala Sitharaman, in her interim Budget speech on Thursday, mentioned Pradhan Mantri MUDRA Yojana highlighting the momentum for ‘Nari Shakti’ in the financial year. “30 crore MUDRA Yojana loans have been given to women entrepreneurs,” she said.

Pradhan Mantri MUDRA Yojana (PMMY) is a scheme launched by Prime Minster Narendra Modi in 2015 to provide loans up to Rs 10 lakh to non-corporate, non-farm small/micro enterprises. These loans are classified as MUDRA loans under PMMY.

Commercial Banks, RRBs, Small Finance Banks, MFIs and NBFCs can disburse these MUDRA loans. Three products namely ‘Shishu’, ‘Kishore’ and ‘Tarun’ were created under to signify the stage of development, funding needs of the beneficiary and also provide a reference point for the next phase of growth. ‘Shishu’ is for loan amounts up to Rs 50,000, ‘Kishore’ Rs 50,001 to Rs 5 lakh, and ‘Tarun’ from Rs 5 lakh to Rs 10 lakh. According to MUDRA official website, the data shows that the government disbursed an amount of around 13 lakh crore rupees for 2015-2016 when the scheme was introduced which has jumped to 45 lakh crore rupees for 2022-2023.

MUDRA loans do not require any collateral/ security, and hence were perceived to be very risky when they were launched. Currently Shri Sivasubramanian Ramann is the Chairman of MUDRA.

From the homepage