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Pradhan Mantri Mudra Yojana: About INR 14.96 Lakh Crore sanctioned by Banks since 2015

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Pradhan Mantri Mudra Yojana: About INR 14.96 Lakh Crore sanctioned by BanksThe Ministry of Finance has stated that Banks & other Financial Institutions have sanctioned 28.68 Crore beneficiaries worth INR 14.96 Lakh Crore (as of March 2021) under Pradhan Mantri Mudra Yojana (PMMY), since its launch in 2015.

  • MUDRA stands for Micro Units Development & Refinance Agency Ltd.
  • As many as 4.2 Crore Mudra Loans worth INR 2.66 Lakh crore were sanctioned in FY 2020-21.

MUDRA Yojana – It was launched on April 8, 2015, by Prime Minister Narendra Modi.

  • Initially formed as a wholly-owned subsidiary of Small Industries Development Bank of India (SIDBI) with 100% capital being contributed by it.
  • The Authorized Capital of MUDRA is INR 1000 Crore & the paid-up capital is INR 750 Crore, fully subscribed by SIDBI.
  • It was registered as a company under the Companies Act 2013 and as a Non-Banking Finance Institution with the Reserve Bank of India (RBI).

Objective – To promote entrepreneurship among youths.

  • Loans – Collateral free loans of upto INR 10 Lakh are extended by Member Lending Institutions (MLIs) through Scheduled Commercial Banks, Regional Rural Banks (RRBs), Small Finance Banks (SFBs), NBFCs & MFIs to MSMEs.
  • MUDRA Bank, a public sector financial institution set up under PMMY Scheme provides loans at low rates to MFI & NBFC which then provide credit to MSMEs.
  • Purposes – Loans are extended for income-generating activities in manufacturing, trading and services sectors and for activities allied to agriculture.
  • Targeted Segments – Non-Corporate Small Business Segment (NCSB)
  • Monitoring of Progress – At the state level, it will be monitored through SLBC (State-Level Bankers’ Committee) & at National Level by MUDRA/Department of Financial Services.


Mudra Loans are offered in 3 categories namely – ‘Shishu’, ‘Kishore’ & ‘Tarun’.

  • Shishu – Loans of upto INR 50, 000
  • Kishore – Loans of upto INR 50, 000 – INR 5 Lakh
  • Tarun – Loans of upto INR 5 Lakh – INR 10 Lakh

Achievements of the Scheme

  • The average ticket size of loans is about INR 52, 000
  • 88% of the loans are in the ‘SHISHU’ category
  • About 25% of loans have been given to New entrepreneurs, 68% to women entrepreneurs & 51% of loans given to SC/ST/OBC borrowers.
  • Out of 51%, SCs and STs constitute 22.53 % of the borrowers & OBCs constitute 28.42% of the borrowers.
  • About 11% of loans have been given to Minority Community Borrowers.
  • According to a survey conducted by the Ministry of Labour & Employment, PMMY helped in the generation of 1.12 crore jobs from 2015-2018.
  • Out of 1.12 crore, women accounted for 69 Lakh (62%).

Recent Related News:

i.August 26, 2020, As of March 31, 2020, women in Tamil Nadu topped the list of loan benefits under PMMY by availing Rs 58,227 crore loan followed by women in West Bengal (Rs 55,232 crore), Karnataka (Rs 47,714 crore), Bihar (Rs 44,879 crore) and Maharashtra (Rs 42,000 crore).

About Mudra Bank:
MD & CEO – Aalok Gupta
Headquarters – Mumbai, Maharashtra