Pradhan Mantri Mudra Yojana (PMMY) Explained
The Pradhan Mantri Mudra Yojana (PMMY) provides collateral-free institutional credit to micro and small non-corporate, non-farm enterprises.
The Pradhan Mantri Mudra Yojana (PMMY) provides collateral-free institutional credit to micro and small non-corporate, non-farm enterprises.
Loan categories
Loans are given in three categories based on the stage of the business: Shishu (smallest loans), Kishor (mid-range) and Tarun (largest). They are routed through banks and financial institutions.
Purpose
The scheme supports small entrepreneurs, income-generating activities and self-employment, promoting financial inclusion.
Why it matters for UPSC
The Mudra loan categories (Shishu, Kishor, Tarun) and the collateral-free feature are commonly tested scheme facts.
Practise related UPSC PYQs
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Practise PYQs →Frequently asked questions
What are the three categories of Mudra loans?
Shishu, Kishor and Tarun, based on loan size and business stage.
Are Mudra loans collateral-free?
Yes. PMMY provides collateral-free credit to eligible micro and small enterprises.