The government of India has launched several schemes and services with just one aim, i.e., to improve the quality of life of people by helping them in accessing necessary and crucial needs. One of those schemes is the Pradhan Mantri Mudra Yojana (PMMY), which has now completed a 10-year milestone.
Read the article to learn more details about the PM Mudra Loan Yojana, answers to questions like what is the PM Mudra Yojana, PM Mudra Yojana under which ministry, PM Mudra Yojana launch date, and the impact it has had over the last 10 years of its operation.
What Is The PM Mudra Yojana?
The PM Mudra Yojana Scheme is a social security scheme. PM Mudra Yojana launch date was 8th of April, 2015, by the honourable Prime Minister of India, to help boost the abilities of small businesses and sectors belonging to non-farming. The answer to the question, ‘PM Mudra Yojana under which ministry’ is the Ministry of Finance. The PMMY provides concessions in the form of collateral-free loans of up to Rs. 10 lakh to marginal borrowers and also new business owners under three categories, which are differentiated as Shishu (up to Rs. 50,000), Kishore (Rs. 50,000 – Rs. 5 lakh), and Tarun (Rs. 5 lakh – Rs. 10 lakh). Key details about the PM Mudra Yojana loan , such as PM Mudra Yojana eligibility, PM Mudra Yojana interest rate, and the process of PM Mudra Yojana online apply, are described in detail in our full article on the scheme.
10 Years Of PM Mudra Yojana Scheme
Till today, the PM Mudra Loan Yojana has loaned around Rs. 33 lakh crore collateral-free loans to roughly 52 crore beneficiaries from various parts of the nation. Beneficiaries consist of women and people from the marginalised communities
The Sarkari Yojana has had a strong impact on the people and the country as a whole. It has changed the landscape in the following ways laid down in detail below for one’s better understanding.
1. Empowerment Of Minority Communities
As per the report of the State Bank of India, half of the Mudra accounts are owned by people from minority communities like Scheduled Castes (SCs), Scheduled Tribes (STs), and Other Backward Classes (OBCs).
It has also been noticed that Kishor and Tarun loans are more in demand compared to Shishu loans. Kishor loans have increased drastically from 5.9% in 2016 to 44.7% now, along with the average size of the loans from Rs. 38,000 in 2016 to over Rs. 1.02 lakh till date.
2. Women Entrepreneurs
Out of the total beneficiaries of PMMY, 68% are women. It has also been noted that the average loan taken by each woman has increased by 13%, which makes the amount near Rs. 62,679. The average deposit balances rose to 14% annually, making the average deposit amount around Rs. 95,269.
3. Credit Taken By MSMEs
The credit given to the Micro, Small, & Medium Enterprises (MSMEs) increased from Rs. 8.51 lakh crore in 2014 to Rs. 27.25 lakh crore and is expected to cross the Rs. 30 lakh crore mark this year.
4. Top States
The five major states which has given the highest PM Mudra Yojana loans are listed below in tabular form:
| Name of the state | PM Mudra Yojana loan Amount |
|---|
| Tamil Nadu | Rs. 3.23 lakh crore |
| Uttar Pradesh | Rs. 3.14 lakh crore |
| Karnataka | Rs. 3.02 lakh crore |
| Maharashtra | -- |
| West Bengal | -- |
In Union Territories, Jammu & Kashmir is leading by Rs. 45,816 crore given to around 21 lakh Mudra account holders.
5. NPA Under PM Mudra Yojana
The govt has managed to keep the Non-Performing assets (NPA) as low as possible. Presently, NPA has been stagnant at 3.6%.
Conclusion
The PM Mudra Yojana has proved itself to be one of the best initiatives launched by the Indian government to provide financial aid to people from the less fortunate sections of society. It acts as a sword for people from the marginalised or low-income groups and empowers them to turn their dreams into reality.
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