Part of: Prelims and GS II – Policies and interventions
Context: 7th anniversary of Pradhan Mantri Mudra Yojana is being observed on 8th April.
According to the Finance Ministry, 51 percent of total loans sanctioned under the Pradhan Mantri Mudra Yojana went to Scheduled Caste, Scheduled Tribe, and Other Backward Class categories.
Pradhan Mantri MUDRA Yojana (PMMY)
The scheme was launched by Prime Minister on April 8, 2015.
Under this yojana, the government provides financial assistance of Rs 10 lakh to non-corporate, non-farm small/micro enterprises to promote startups.
Commercial Banks, RRBs, Small Finance Banks, MFIs and NBFCs have been roped in to provide this loan facility to the right beneficiaries.
The scheme aims to promote entrepreneurship among the youth, generate employment and enhance income.
The yojana develops and improves entrepreneurial culture in the country by providing collateral free and cheap credit to “millions of unfunded micro units” which were otherwise struggling to establish due to lack of availability of funds.
