Mudra Loans

The Pradhan Mantri Mudra Yojana (PMMY) in India, commonly known as Mudra Loans, is a government initiative aimed at facilitating micro-enterprises by providing financial support. Launched in 2015, this scheme categorizes loans into three segments: Shishu, for loans up to ₹50,000; Kishor, for loans between ₹50,000 and ₹5 lakh; and Tarun, for loans between ₹5 lakh and ₹10 lakh. Mudra Loans are extended through various financial institutions, including banks, NBFCs, and microfinance institutions, fostering entrepreneurship in sectors such as manufacturing, trading, and services. The program promotes financial inclusion by offering collateral-free loans, enabling small business owners, particularly those in the informal sector, to access formal credit channels. By empowering individuals to establish or expand their enterprises, Mudra Loans contribute significantly to job creation and the overall economic development of the country.