PM
MUDRA SCHEME – GOVERNMENT SCHEME
News: Mudra loans surge at record 38% in H1 to
₹1.92-lakh crore
What's
in the news?
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Recently, the disbursal of small business
loans under Pradhan Mantri Mudra Yojana (PMMY) registered a record 38 per cent
growth in the first half of the current financial year ended September 2023,
compared to the same period last year.
About
PM MUDRA yojana:
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About:
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The Pradhan Mantri MUDRA Yojana (PMMY) was
launched on 8th April 2015.
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Aim:
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To facilitate easy collateral-free micro
credit of up to Rs.10 lakh to
non-corporate, non-farm small and micro entrepreneurs for income generating
activities.
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Features:
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The loans under PMMY are provided by Member Lending Institutions (MLIs),
i.e., Banks, Non-Banking Financial Companies (NBFCs), Micro Finance
Institutions (MFIs) and other financial intermediaries.
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The loans have been divided into three
categories based on the need for finance and stage in maturity of the
business.
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These are Shishu (loans up to Rs 50,000/-), Kishore (loans above Rs 50,000/- and up to Rs 5 lakh), and Tarun (loans above Rs. 5 lakh and up to
Rs. 10 lakh).
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The
rate of interest is decided by lending institutions in terms of RBI guidelines. In the case of a working capital facility,
interest is charged only on money held overnight by the borrower.
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Interest
Subvention of 2% on prompt repayment of Shishu loans
extended under PMMY for a period of 12 months to all eligible borrowers.
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Credit
Guarantee Fund for Micro Units (CGFMU):
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Credit Guarantee Fund for Micro Units was
set up in January 2016 under the aegis of the National Credit Guarantee Trustee
Company Ltd. (NCGTC), a wholly-owned company of Government of India, to provide
guarantee to loans.