Indian Economy News

Pradhan Mantri Mudra Yojana generated 1.12 crore net additional employment from 2015 to 2018

According to a national level survey conducted by the Ministry of Labour and Employment (MoLE), the Pradhan Mantri Mudra Yojana (PMMY) generated 1.12 crore additional employment during 2015-18. Furthermore, 81 lakh loans were extended in Rajasthan out of which 52 lakh loans were extended to women. Issues like delay in turn-around-time (TAT), turning down of loan applications related to PMMY were redressed in coordination with the bank.

The scope of activities was expanded to activities allied with agriculture in 2016-17 including pisciculture, beekeeping, poultry, livestock rearing, grading, sorting, aggregation agro industries, diary, fishery, agri-clinics and agribusiness centres, food and agro-processing, etc. In 2017-18, loans approved for the purchase of tractors and power tillers are now eligible under the PMMY upper limit of US$ 12,087 (Rs 10 lakhs). Moreover, 2018-19 onwards, loans authorised for the purchase of two-wheelers for commercial purposes by individuals were also subject to PMMY.

The PMMY aims to provide collateral-free loans up to US$ 12,087 (Rs 10 lakhs) by Member Lending Institutions (MLIs). Eligible beneficiaries can avail PMMY loans for income-generating activities across 3 loan products i.e., Shishu (loans of up to US$ 604.3 (Rs. 50,000)), Kishore (loans above US$ 604.3 (Rs. 50,000) and up to US$ 6,043.5 (Rs. 5 lakh)) and Tarun (loans above US$ 6,043.5 (Rs. 5 lakh) and up to US$ 12,087 (Rs. 10 lakh)).

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.