Note4Students
From UPSC perspective, the following things are important :
Prelims level: Pradhan Mantri Mudra Yojana (PMMY)
Why in the News?
- The Centre has doubled the limit of Mudra loan amount under the PMMY to Rs 20 lakh from Rs 10 lakh under a new ‘Tarun Plus’ category to promote entrepreneurship in the country.
- This higher loan limit is available to entrepreneurs who have previously taken and successfully repaid loans under the existing ‘Tarun’ category.
About Pradhan Mantri Mudra Yojana (PMMY):
| Details | |
| Launch | Launched on April 8, 2015, by Prime Minister. |
| Objective |
|
| Recent Update | Loan limit increased from Rs 10 lakh to Rs 20 lakh under the new Tarun Plus category, announced in July 2024. |
| Loan Categories | • Shishu: Loans up to Rs 50,000 • Kishore: Loans between Rs 50,000 and Rs 5 lakh • Tarun: Loans between Rs 5 lakh and Rs 10 lakh • Tarun Plus: Loans between Rs 10 lakh and Rs 20 lakh |
| Loan Performance (2023-24) | • 66.8 million Loans sanctioned totaling Rs 5.4 trillion. • Over 487.8 million loans worth Rs 29.79 trillion sanctioned since launch. |
| NPA Statistics | • NPA of public sector banks under Mudra loans decreased to 3.4% in FY24, down from 4.77% in 2020-21. • Gross NPA for scheduled commercial banks at 2.8% as of March 2024. |
| Target Beneficiaries | Aims to empower women, minorities, and marginalized communities by facilitating easy access to credit. |
| Technological Intervention |
|
PYQ:[2016] Pradhan Mantri MUDRA Yojana is aimed at: (a) Bringing the small entrepreneurs into formal financial system. (b) Providing loans to poor farmers for cultivating particular crops. (c) Providing pension to old and destitute persons. (d) Funding the voluntary organizations involved in the promotion of skill development and employment generation. |
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