Empowering Women in Entrepreneurship: Pradhan Mantri Mudra Yojana (PMMY)

• The recent emphasis from the Union Finance and Corporate Affairs Minister highlights the priority accorded to women entrepreneurs within the Pradhan Mantri Mudra Yojana scheme.

Unveiling Pradhan Mantri Mudra Yojana (PMMY):

• The Pradhan Mantri Mudra Yojana stands as a flagship scheme by the Government of India, aiming to extend accessible credit to micro and small enterprises. With a core intention to integrate enterprises into the formal financial system, this initiative is coined to “fund the unfunded”.
• This scheme facilitates small borrowers in obtaining loans of up to Rs 10 lakhs for non-farm income-generating activities through a variety of financial institutions, including Public Sector Banks, Regional Rural Banks, Cooperative Banks, Private Sector Banks, Foreign Banks, Micro Finance Institutions (MFI), and Non-Banking Finance Companies (NBFC).

Eligibility Criteria:

• Any Indian citizen with a business plan for a non-farm sector income-generating activity falls within the eligibility scope. This includes ventures in manufacturing, processing, trading, or the service sector, seeking credit below Rs 10 lakhs. Prospective borrowers can approach banks, MFIs, or NBFCs to access Micro Units Development & Refinance Agency Ltd. (MUDRA) loans under PMMY.

Range of Loans Available:

• Under the umbrella of PMMY, MUDRA has introduced specific loan products catering to varying financial needs:
• Shishu: covering loans up to 50,000/-
• Kishor: covering loans above 50,000/- and up to 5 lakh
• Tarun: covering loans above 5 lakh and up to 10 lakh

Government Support:

• Notably, PMMY doesn’t offer subsidies for the loans extended. However, if a loan proposal aligns with a Government scheme providing capital subsidies, it becomes eligible for PMMY support.
• This initiative is pivotal in fostering entrepreneurship across diverse sectors, empowering individuals to establish and expand their enterprises without financial constraints.