The Pradhan Mantri Mudra Yojana( PMMY) is a flagship scheme of the Government of India launched on April 8, 2015, to give fiscal support to micro and small enterprises( MSEs) in the country. The scheme aims to promote entrepreneurship and induce employment openings by easing access to credit for small businesses.
Under the PMMY, loans of over to INR 10 lakhs($ 13,500) are handed tomicro-enterprises engaged in manufacturing, trading, and services conditioning, including food processing, fabrics, and crafts. The loans are handed through sharing banks,non-banking fiscal companies( NBFCs), and microfinance institutions( MFIs).
The PMMY is divided into three orders Shishu, Kishore, and Tarun. The Shishu order covers loans up to INR 50,000($ 675), Kishore covers loans between INR 50,000 and INR 5 lakhs($ 675 to$ 6,750), and Tarun covers loans between INR 5 lakhs and INR 10 lakhs($ 6,750 to$ 13,500).
The PMMY has been necessary in furnishing fiscal support to a large number of small businesses, particularly in pastoral areas. Since its launch, the scheme has eased the disbursement of loans worth over INR 18 lakh crores($ 243 billion) to further than 30 million heirs.
PMMY is a scheme for startups and MSMEs that aims to give access to capital and loans to help gambles sustain and grow their business. Launched in 2015, eligible aspirants can claim loans of over to 10 lakhs for working capital conditions. The prepayment period for loans profited under this scheme is five to seven times.
There are three orders under which loan gets handed in PMMY
- Shishu – Up to 50,000
- Kishor- Up to 5 Lakhs
- Tarun – Between 5- 10 Lakhs
Startups must be involved in trading, manufacturing, services, or any othernon-farm business to be eligible for this scheme.