The Pradhan Mantri Mudra Yojana (PMMY) is a significant government initiative designed to provide financial assistance to small and micro-enterprises. This scheme aims to facilitate business growth by offering accessible loans tailored for entrepreneurs at different stages.
The PMMY offers loans categorized into three distinct types:
In the latest Union Budget, a significant announcement was made regarding the Tarun category loan limit. It has been doubled from ₹10 lakh to ₹20 lakh, specifically for individuals who have successfully repaid their previous loans.
The Mudra scheme has notably empowered women entrepreneurs, who constitute approximately 70% of the beneficiaries. This trend highlights the program's commitment to promoting gender equality in business financing.
In the first quarter of FY25, disbursements under the Mudra scheme exceeded ₹1 lakh crore, a significant increase from ₹81,957 crore in the same timeframe last year. Overall, FY24 recorded disbursals surpassing ₹5 lakh crore, showcasing remarkable growth.
Since its inception in 2015, the Mudra scheme has successfully disbursed loans exceeding ₹30 lakh crore, demonstrating its vital role in supporting micro-enterprises across India.
Currently, the states of Uttar Pradesh, Bihar, and Tamil Nadu lead in terms of Mudra loan disbursements, reflecting regional engagement with the scheme.
Public-sector banks, particularly State Bank of India, Punjab National Bank, and Canara Bank, hold a substantial share of Mudra loan disbursements, underscoring their pivotal role in facilitating this financial support.
The growth of Mudra loans can be attributed to several key factors, including active promotion by public-sector banks and follow-up on loan utilization. Furthermore, the guarantee provided by the National Credit Guarantee Trustee Company Ltd. (NCGTC) enhances lender confidence and fosters loan growth.
Q1. What is the purpose of the Pradhan Mantri Mudra Yojana?
Answer: The Pradhan Mantri Mudra Yojana aims to provide loans to small and micro-enterprises, promoting business growth and financial inclusion for entrepreneurs.
Q2. How are Mudra loans categorized?
Answer: Mudra loans are categorized into three types: Shishu (up to ₹50,000), Kishore (₹50,000 to ₹5 lakh), and Tarun (₹5 lakh to ₹20 lakh).
Q3. What recent changes were made to the Mudra loan limits?
Answer: The recent budget increased the loan limit for the Tarun category from ₹10 lakh to ₹20 lakh for eligible entrepreneurs who have repaid previous loans.
Q4. Which states have the highest Mudra loan disbursements?
Answer: Uttar Pradesh, Bihar, and Tamil Nadu are the leading states for Mudra loan disbursements, reflecting active participation in the scheme.
Q5. How much has been disbursed under the Mudra scheme since its launch?
Answer: Since its launch in 2015, the Mudra scheme has disbursed over ₹30 lakh crore, significantly aiding small enterprises across India.
Question 1: What is the primary aim of the Pradhan Mantri Mudra Yojana?
A) To provide loans to large enterprises
B) To facilitate loans for small and micro-enterprises
C) To promote foreign investments
D) To support only women entrepreneurs
Correct Answer: B
Question 2: Which category of Mudra loan is for amounts up to ₹50,000?
A) Tarun
B) Kishore
C) Shishu
D) None of the above
Correct Answer: C
Question 3: Which bank has the largest share of Mudra loan disbursements?
A) HDFC Bank
B) ICICI Bank
C) State Bank of India
D) Axis Bank
Correct Answer: C
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