Pradhan Mantri Mudra Yojana (PMMY) – UPSC Notes
PMMY is a flagship scheme launched by the Government of India in April 2015. It aims to provide financial support to micro and small enterprises (MSEs
Pradhan Mantri Mudra Yojana (PMMY) Introduction The Pradhan Mantri Mudra Yojana (PMMY) is a flagship scheme launched by the Government of India in April 2015. It aims to provide financial support to micro and small enterprises (MSEs) by offering easy access to collateral-free loans. The scheme is designed to promote entrepreneurship, self-employment, and financial inclusion among small business owners, particularly from underserved sections of society. Key Objectives Funding the Unfunded – Provide financial assistance to small and micro businesses that lack access to formal credit. Promoting Financial Inclusion – Extend banking and financial services to marginalized and socio-economically weaker sections. Encouraging Entrepreneurship – Enable small businesses to start, expand, and sustain operations. Loan Categories under PMMY PMMY offers loans under four categories, targeting different business needs: Shishu – Loans up to ₹50,000 for startups and early-stage businesses. Kishore – Loans above ₹…