Pradhan Mantri MUDRA Yojana Benefits & PMMY Scheme Details
Scheme Launch Date: 8th April 2015
Main Objective & PMMY Scheme Benefits: Financial support for growth of microenterprises sector.
Pradhan Mantri MUDRA Yojana (Micro Units Development and Refinance Agency) was launched with the purpose to provide funding to the non-corporate small business sector. Pradhan Mantri Mudra Yojana (PMMY) is open and is available from all Bank branches across the country.
Under the aegis of Pradhan Mantri Mudra Yojana (PMMY), MUDRA has created products / schemes. The interventions have been named ‘Shishu’, ‘Kishor’ and ‘Tarun’ to signify the stage of growth / development and funding needs of the beneficiary micro unit / entrepreneur and also provide a reference point for the next phase of graduation / growth to look forward to:
- Shishu: covering loans upto 50,000/-
- Kishor: covering loans above 50,000/- and upto 5 Lakh
- Tarun: covering loans above 5 Lakh and upto 10 Lakh
It would be ensured that more focus is given to Shishu Category Units and then Kishor and Tarun Categories.
Within the framework and overall objective of development and growth of micro enterprises sector under Shishu, Kishor and Tarun, the products being offered by MUDRA are so designed, to meet requirements of different sectors / business activities as well as business / entrepreneur segments.
Pradhan Mantri MUDRA Yojana (PMMY) Scheme Benefits
The funding support from MUDRA is of four types:
- Micro Credit Scheme (MCS) for loans upto 1 lakh finance through MFIs.
- Refinance Scheme for Commercial Banks / Regional Rural Banks (RRBs) / Scheduled Co-operative Banks
- Women Enterprise program
- Securitization of loan portfolio.
Micro Credit Scheme
- Micro Credit Scheme is offered mainly through Micro Finance Institutions (MFIs), which deliver the credit upto Rs.1 Lakh, for various micro enterprise activities.
- Although, the mode of delivery may be through groups like SHGs/JLGs, the loans are given to the individuals for specific income generating micro enterprise activity.
- The MFIs for availing financial support need to enroll with MUDRA by complying with some of the requirements as notified by MUDRA, from time to time.
Refinance Scheme for Banks
- Different banks like Commercial Banks, Regional Rural Banks and Scheduled Cooperative Banks are eligible to avail of refinance support from MUDRA for financing micro enterprise activities.
- The refinance is available for term loan and working capital loans, upto an amount of 10 Lakh per unit.
- The eligible banks, which have enrolled with MUDRA by complying with the requirements as notified, can avail of refinance from MUDRA for the loan issued under Shishu, Kishor and Tarun categories.
Women Enterprise Program
- In order to encourage women entrepreneurs the financing banks / MFIs may consider extending additional facilities, including interest reduction on their loan.
- At present, MUDRA extends a reduction of 25bps in its interest rates to MFIs / NBFCs, who are providing loans to women entrepreneurs.
Securitization of loan portfolio
MUDRA also supports Banks / NBFCs / MFIs for raising funds for financing micro enterprises by participating in securitization of their loan assets against micro enterprise portfolio, by providing second loss default guarantee, for credit enhancement and also participating in investment of Pass Through Certificate (PTCs) either as Senior or Junior investor.
Pradhan Mantri MUDRA Yojana (PMMY) Scheme Vision
To be an integrated financial and support services provider par excellence benchmarked with global best practices and standards for the bottom of the pyramid universe for their comprehensive economic and social development.
Pradhan Mantri MUDRA Yojana (PMMY) Scheme Mission
To create an inclusive, sustainable and value based entrepreneurial culture, in collaboration with our partner institutions in achieving economic success and financial security.
Pradhan Mantri MUDRA Yojana (PMMY) Scheme Purpose
Our basic purpose is to attain development in an inclusive and sustainable manner by supporting and promoting partner institutions and creating an ecosystem of growth for micro enterprises sector.
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