Scheme Sponsor: Ministry of Finance

Target Group: Any micro unit entrepreneurs

Mode of Assistance: Funding Support/Fund raising Assistance

About the Scheme:
Aiming to ensure a consistent growth in the supply of credit to the non-corporate small
business sector, PMMY offers borrowers loans up to Rs. 10 lakh without the need for
collateral. Shishu (up to Rs.50,000), Kishore (Rs.50,000 to Rs.5 lakh), and Tarun (Rs.5 lakh
to Rs.10 lakh) are the three loan categories under PMMY. Beginning in April 2016, PMMY
will also include agricultural-related activities and services (apart from crop loans) as well as
land improvement projects like canals, irrigation systems, and wells.

Assistance Pattern:

• It offers need-based term loans, OD limits, and composite loans to eligible borrowers for capital asset acquisition, operating capital, and marketing needs. MUDRA loans support small businesses that generate money in manufacturing, processing, services, or commerce.
• The project cost is determined by the business plan and investment anticipated.
• MUDRA loans are not intended for consumption or personal needs.MUDRA has introduced the “MUDRA Card,” a RuPay-issued debit card that offers flexible credit for working capital limits.
• Upto to Rs.10 lakh in three categories viz. Shishu, Kishore and Tarun is provided under the scheme.
• Banks are required to encourage their branch level functionaries to avail of the Credit Guarantee Scheme cover, wherever felt desirable.

Apply on: https://www.mudra.org.in/Home/PMMYBankersKit
More Information on: https://www.mudra.org.in/