Budget 2024 Highlights: Pradhan Mantri MUDRA Yojana (PMMY) Allocation

The government has extended 43 crore loans aggregating to ₹22.5 lakh crore under the PM Mudra Yojana, according to the expenditure Budget document.

Pradhan Mantri MUDRA Yojana (PMMY) was launched in 2015 by Prime Minister Narendra Modi. The Micro Units Development and Refinance Agency Limited (MUDRA) is a government-owned financial institution aimed at enhancing the development and refinancing of micro-unit enterprises. The scheme offers loans up to ₹10 lakh to non-corporate, non-farm small/micro enterprises. The MUDRA loans under PMMY are provided by commercial banks, rural banks, small finance banks, and NBFCs. Borrowers can approach any of these lending institutions for availing loans. The online application option is also available.

The loans are offered under the Pradhan Mantri MUDRA Yojana in three categories- 'Shishu', 'Kishor', and 'Tarun', indicating the growth stage and funding requirements of the beneficiary micro unit or entrepreneur. The loan amount varies depending on the category. 'Shishu' covers loans up to ₹50,000, 'Kishor' covers loans above ₹50,000 and up to ₹5 lakh, and 'Tarun' covers loans above ₹5 lakh up to ₹10 lakh.

Since its launch in 2015, a total amount of ₹23.2 lakh crore has been sanctioned across 40.82 crore loan accounts as of March 24, 2023. Of these accounts, around 68% belong to women entrepreneurs, while 51% belong to entrepreneurs from the SC/ST and OBC categories.

In the financial year 2015-2016, a total of 34,880,924 PMMY loans were sanctioned, amounting to ₹1.37 lakh crore. Of this sanctioned amount, ₹1.32 lakh crore was disbursed. In the financial year 2022-2023, the number of PMMY loans sanctioned increased to 6.23 crore with the sanctioned amount totalling ₹4.56 lakh crore.