Pradhan Mantri Mudra Yojna(PMMY)

Key Points

• Refinance lenders for loan to small borrowers by MUDRA.
• Micro Units Development and Refinance Agency(MUDRA) - Banks and Micro Finance Institutions(MFI) can draw refinance under MUDRA scheme after becoming member lending institutions of MUDRA, opening them as additional resource stream.
• Scheme is to fund the unfunded and bring such enterprises to formal financial systems.
• Banks will extend affordable credit to all non-farm enterprises under micro enterprises and small enterprises segment engaged in income generating activities.
• Loans to manufacturing, trading, and services with credit need to the tune of Rs 10 Lakh.
• Target group are retail traders like vegetable vendor and Kirana merchants, services like mechanics, fabrication, tailors, all service providers are covered, small borrower like shoe repairers, tent house hirers, cycle rickshaw, auto and taxi operators. All categories of areas including rural, semi urban, urban and metro.
• Shishu if loan amount < Rs 50000.
• Kishore if loan amount > Rs 50000 && < Rs 5 Lakhs.
• Tarun if loan amount > Rs 5 Lakhs && < Rs 10 Lakhs.
• Bank will not insist for collateral security up to Rs 10 Lakhs.
• Recently SBI has decided to give loans for UBER drivers under PMMY.