The Indian Government has achieved its annual lending target under the Pradhan Mantri Mudra Yojana for the 3rd consecutive year. In the financial year 2018-19, small scale loans worth more than Rs. 3.21 Lakh Crore were sanctioned. The target for this year was set at Rs. 3 Lakh Crore.
Furthermore, the amount of disbursement of Pradhan Mantri Mudra loan touched the mark of Rs. 3.12 Lakh Crore. It has increased by nearly 23% from the previous year. The average rate of sanctioned loans translated to Rs. 970 Crore per working day.
History of Pradhan Mantri Mudra Yojana
- Fiscal year 2016-17
The Pradhan Mantri Mudra Yojana had set a target of Rs. 1.8 Lakh Crore for the amount of sanctioned loans in the financial year 2016-17. The amount of sanctioned loans exceeded the goal considerably, but the amount of disbursed loans fell short by over Rs. 5,000 Crore.
- Fiscal year 2017-18
The PMMY scheme had a specified target of Rs. 2.44 Lakh Crore of the amount of disbursed loans in the fiscal year 2017-2018. The amount of disbursed loans exceeded the goal by a margin of Rs. 2,000 Crore.
A brief idea about Pradhan Mantri Mudra Yojana
Pradhan Mantri Mudra Yojana is a funding scheme initiated by the Indian Government to provide a formal source of business finance up to Rs. 10 Lakh. It is a collateral-free credit scheme that can be availed by any form of legal establishments including public companies, private limited companies, partnership firms and emerging business ventures.
Categories of PMMY scheme
Companies can apply for Mudra loan under different types of categories in the PMMY scheme depending on their growth and financial development. Various categories under this scheme are here as follows –
- Shishu – Companies which are recently started can avail credits under this category. They are eligible to avail an amount of up to Rs. 50,000 for a repayment period of 5 years.
- Kishore – Companies which have already started but are not established yet can avail a Pradhan Mantri Mudra loan under this category. They are eligible to avail an amount between Rs. 50.000 and Rs. 5 Lakh under this category. However, interest rates and repayment period can vary according to a financial institution they are lending from.
They can utilise a loan amount to fund any of their expenses, including increasing working capital according to their business needs, manage their inventory, etc.
- Tarun – Companies who are already established and require funds for expansion can apply under this category. They are eligible to avail a loan amount between Rs. 5 Lakh and Rs. 10 Lakh. However, the amount and the loan terms can vary depending on the credit history of a borrower.
The required mudra loan eligibility to avail Pradhan Mantri Mudra loans is mentioned below –
- Applicants are required to be an Indian citizen.
- Applicants are required to have an existing company or a business idea in India related to any of the sectors among manufacturing, servicing, trading and processing.
- Individuals having a requirement of funds of less than Rs. 10 Lakh are eligible to apply for this scheme.
Pradhan Mantri Mudra loans continue to provide small scale industries all over the country a much necessary backup of financial assistance. The central government intends to make a considerable addition to the number of beneficiaries in the upcoming few years under the PMMY scheme.