MUDRA YOJANA

Introduction

• PM Mudra Yojana aims to enable Microfinance Institutions (MFIs), Non-Banking financial institutions/Companies (NBFCs), Small Finance Banks, RBRs, Commercial Banks, Cooperative Banks, etc. to provide Low Rate Loans to eligible entities
• The beneficiary should be a citizen of India.
• The loans are basically for people having a business plan in a Non-Farming Sector.

Benefits of MUDRA Yojana

• To sanction loans up to rupees 10 Lakhs to those who have a business plan to generate income from a non-farm activity like manufacturing, processing, trading, or service sector but don’t have enough capital to invest
• To help generate sources of employment and increase the overall GDP by providing micro-enterprises with credit facilities.
• With the help of MUDRA bank, the network of microfinance institutions will be monitored and new registration will also be done.
• It will help India also grow its tax base as incomes from the informal sector are non-taxed.
• PMMY further adds to the vision of financial inclusion to reach the last mile of credit delivery to micro-businesses and take the help of technology solutions.