Mudra Yojana: Banks sanction Rs 3.9 lakh crore to 4.9 crore beneficiaries under the scheme

From the latest data of January 2024, Pradhan Mantri MUDRA Yojana (PMMY) has marked significant accomplishments, sanctioning a total of 49,908,304 loans. The sanctioned amount stands at Rs 390,515.79 crores, with Rs 383,128.65 crores disbursed, underscoring the substantial impact of the scheme on fostering micro-enterprise growth.

PMMY has been a pivotal scheme since its launch on April 8, 2015, aimed at providing financial support to non-corporate, non-farm small/micro enterprises. Under the aegis of PMMY, the Micro Units Development and Refinance Agency (MUDRA) has introduced three distinctive loan products – ‘Shishu,’ ‘Kishore,’ and ‘Tarun,’ catering to the diverse funding needs of micro-entrepreneurs.

Under the umbrella of PMMY, three distinct loan Categories:

1. Shishu: Covers loans up to Rs. 50,000.
2. Kishore: Encompasses loans above Rs. 50,000 and up to Rs. 5 lakh.
3. Tarun: Targets loans above Rs. 5 lakh and up to Rs. 10 lakh, signifying the progression and evolving funding requirements of beneficiary micro-units.

Eligibility Criteria:

PMMY extends its support to a variety of legal entities, including individuals, proprietary concerns, partnership firms, private and public limited companies, and other legal forms. Notably, applicants are required to maintain a satisfactory credit track record and not be defaulters to any bank or financial institution. Additionally, individual borrowers must possess the necessary skills, experience, or knowledge relevant to their proposed entrepreneurial activity.

Application Process:

The application process for PMMY has been streamlined for ease of access. Interested individuals can apply through the official portal www.udyamimitra.in by following these steps:

1. Visit the official website and click on ‘Apply Now.’
2. Choose from the options: ‘New Entrepreneur,’ ‘Existing Entrepreneur,’ or ‘Self-Employed.’
3. For new registrations, input essential details such as name, email ID, and mobile number.
4. Generate OTP and complete the registration process.

The government has implemented various initiatives to spread information about PMMY. These include extensive publicity campaigns through print media, TV, radio jingles, hoardings, town hall meetings, financial literacy, and awareness camps, and special drives for financial inclusion. Banks contribute to this effort through branch-based publicity and engagement with Banking Correspondents (BCs).