Pradhan Mantri Mudra Yojana (PMMY) is a scheme set up by the Government of India (GoI) through MUDRA (a subsidiary of SIDBI) that helps in facilitating micro credit upto Rs. 10 lakh to small business owners. MUDRA supports Financial Intermediaries to extend loans to the non-corporate, non-farm sector income generating activities of micro and small entities with credit needs upto Rs. 10 lakhs).
The interventions have been named 'SHISHU', 'KISHOR' and 'TARUN' to signify the stage of growth / development and funding needs of the beneficiary micro unit / entrepreneur.
Shishu (Covering loans upto Rs. 50,000/-) : This stage would cater to entrepreneurs who are either in their primitive stage or require lesser funds in order to get their businesses started.
Kishor (Covering loans upto Rs. 5,00,000/-): This section of entrepreneurs would belong to either those who have already started their business and want additional funds to mobilize their business.
Tarun (Covering loans upto Rs. 10,00,000/-) : If an entrepreneur meets the required eligibility conditions, he/she could apply loan for upto Rs.10 lakhs. This would be the highest level of amount that an entrepreneur could apply for a startup loan.
The lending rates are as per the RBI guidelines issued in this regard from time to time.
Any Indian Citizen who has a business plan for a non-farm income generating activity such as manufacturing, processing, trading or service sector whose credit need is up to Rs 10 lakh
The usual terms and conditions of the lending agency may have to be followed for availing of loans under PMMY.
The business should be either one of the following:
Small manufacturing enterprise
Fruit and Vegetable vendors
'Activities allied to agriculture', e.g. pisciculture, bee keeping, poultry, livestock, rearing, grading, sorting, aggregation agro industries, diary, fishery, agriclinics and agribusiness centres, food & agro-processing, etc. (excluding crop loans, land improvement such as canal, irrigation and wells).