 More than 28.68 crore loans for an amount of Rs. 14.96 lakh crore have been sanctioned by banks, NBFCs and MFIs since the launch of Pradhan Mantri Mudra Yojana (PMMY).

 Pradhan Mantri Mudra Yojana (PMMY) is a flagship scheme of Government of India to “fund the unfunded” by bringing such enterprises to the formal financial system and extending affordable credit to them.
 It enables a small borrower to borrow from all Public Sector Banks such as PSU Banks, Regional Rural Banks and Cooperative Banks, Private Sector Banks, Foreign Banks, Micro Finance Institutions (MFI) and Non-Banking  inance Companies (NBFC) for loans upto Rs 10 lakhs for non-farm income generating activities
 For implementing the Scheme, government has set up an NBFC named, Micro Units Development & Refinance Agency Ltd (MUDRA).
 MUDRA loans are extended by banks, NBFCs, MFIs and other eligible financial intermediaries as notified by MUDRA Ltd.
 The funding support from MUDRA are of two types:
o Micro Credit Scheme (MCS) for loans up to 1 lakh finance through MFIs.
o Refinance Scheme for Commercial Banks / Regional Rural Banks (RRBs) / Small Finance Banks / Non-Banking Financial Companies (NBFCs)
 The present authorised capital of MUDRA is at Rs. 5000 crores with a paid up capital of Rs.1675.93 crore. RBI has allocated an amount of Rs 20,000 crore from Priority Sector shortfall of Commercial Banks for creating a Refinance Corpus Fund.
 Under the aegis of Pradhan Mantri MUDRA Yojana, MUDRA has already created the following products / schemes.
o Shishu: covering loans upto 50,000/-
o Kishore: covering loans above 50,000/- and upto 5 lakh
o Tarun: covering loans above 5 lakhs and upto 10 lakh
 There is no subsidy for the loan given under PMMY. However, at present, MUDRA extends a reduction of 25bps in its interest rates to MFIs / NBFCs, who are providing loans to women entrepreneurs

Q. Pradhan Mantri MUDRA Yojana is aimed at
(a) bringing the small entrepreneurs into formal financial system
(b) providing loans to poor farmers for cultivating particular crops
(c) providing pensions to old and destitute persons
(d) funding the voluntary organizations involved in the promotion of skill development and employment generation

 Banks have been mandated by RBI not to insist for collateral security in the case of loans upto 10 lakh extended to the units in the Micro Small Enterprises sector.
 To mitigate the issue of collateral and to provide comfort to the lending institutions, a Credit Guarantee Product is extended by creation of a Fund called “Credit Guarantee Fund for Micro Units” (CGFMU).
o The Scheme is being managed by National Credit Guarantee Trustee Company Ltd. (NCGTC), an agency promoted by the GOI.
 MUDRA Card is a debit card issued against the MUDRA loan account. The borrower can make use of MUDRA Card in multiple drawals and credits, so as to manage the working capital limit in cost-efficient manner and keep the interest burden minimum.

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