Pradhan Mantri Mudra Yojana (PMMY) stands for social justice in action and embodies the true spirit of ‘Sabka Saath, Sabka Vikas’, as envisioned by the Prime Minister Narendra Modi, Union Finance Minister Nirmala Sitaram said today on the seventh-anniversary celebrations of PMMY scheme in the capital.
The PMMY was launched by Prime Minister Narendra Modi on 8th April 2015, for providing loans up to Rs. 10 Lakh to the non-corporate, non-farm small/micro-enterprises.
While celebrating the 7th anniversary of the Scheme, Union Minister of Finance & Corporate Affairs Nirmala Sitharaman said, “It is noteworthy that more than 34.42 crore loan accounts amounting to Rs.18.60 lakh crore have been opened under the Scheme for the creation of income-generating activities.”
On the theme of business environment and large-scale employment opportunities through PMMY, the Finance Minister said, “The Scheme has helped in creating an enabling environment, particularly for small businesses and has helped generate large-scale employment opportunities at the grassroots level. More than 68% of the loan accounts have been sanctioned to women and 22% of the loans have been given to new entrepreneurs who had not availed any loan since the inception of the Scheme.”
While greeting and congratulating all the Mudra beneficiaries and urging other prospective borrowers to come forward and take part in the nation-building process, Sitharaman said, “With 51% of total loans sanctioned so far going to the SC/ST/OBC category, the Pradhan Mantri Mudra Yojana stands for social justice in action and embodies the true spirit of ‘Sabka Saath, Sabka Vikas’, as envisioned by the Hon’ble Prime Minister.”
On the occasion, Union Minister of State (MoS) for Finance Dr Bhagwat Kisanrao Karad said, “The driving force behind launching Pradhan Mantri Mudra Yojana (PMMY) has been to provide institutional credit to micro, small and medium enterprises in a hassle-free/seamless manner.”
“By assisting 34.42 crore account holders, the scheme has been successfully reaching out to aspiring entrepreneurs, over the last seven years, since inception,” the MoS Added.
On the issue of credit flow, the MoS said, “The other noteworthy focus of PMMY has been able to extend credit to the growing number of beneficiaries from the ‘aspirational districts identified by Niti Aayog, thus enabling the flow of credit to these credit-starved districts.”
PMMY is a key initiative towards providing financial support to the marginalized and hitherto socio-economically neglected classes, Pradhan Mantri MUDRA Yojana (PMMY) has given wings to the dreams and aspirations of millions, along with a feeling of self-worth and independence.
Under PMMY loans are provided up to Rs. 10 Lakh through Member Lending Institutions (MLIs) viz; Banks, Non-Banking Financial Companies (NBFCs), Micro Financial Institutions (MFIs), other financial intermediaries, in three categories namely, ‘Shishu’, ‘Kishore’ and ‘Tarun’ which signifies the stage of growth or development and funding needs of the borrowers.
Loans under PMMY are provided to meet both term loan and working capital components of financing for income-generating activities in manufacturing, trading and service sectors, including activities allied to agriculture such as poultry, dairy, beekeeping, etc.
More than 34.42 crore loans for an amount of Rs 18.60 lakh crore have been sanctioned since the launch of the scheme (as of 25.03.2022). Approximately 22% of the total loans have been sanctioned to New Entrepreneurs.
The average ticket size of the loans is about Rs 54,000. About 23% of the loans have been given to SCs and STs borrowers; About 28% of the loans have been given to OBCs borrowers. About 11% of the loans have been given to Minority community borrowers.