Pradhan Mantri MUDRA Yojana (PMMY)

Prime Minister’s MUDRA Yojana Mudra is an Indian scheme under Bank which was launched by the Prime Minister of India Narendra Modi on 8 April 2015 in New Delhi.


Under the intervention of the Pradhan Mantri Mudra Yojana under Mudra Bank, it has three categories – Shishu, Kishore and Tarun. These three categories will help the beneficiaries in growth and development. The main objectives of Mudra Bank are as follows:

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1. To regulate the lenders and borrowers of micro finance and stabilize the microfinance system by ensuring its regulation and inclusive participation.
2. Supporting microfinance institutions (MFIs) and lending agencies to small traders, retailers, SHGs and individuals in finance and lending activities.
3. To register all MFIs and introduce system of performance rating and grading for the first time. This will help in pre-borrowing assessment and access to the MFI that best meets their needs and has the most satisfactory past record. This will increase the competitiveness of MFIs. The borrowers will get the benefit of this.
4. Providing structural guidelines to borrowers to follow which business failures can be avoided or appropriate steps can be taken in time. MUDRA will help in making what is acceptable procedure or guidelines to be followed for recovery of outstanding money in case of default.
5. Preparation of standardized manuals, which will form the backbone of micro business in future.
6. Micro will formulate a credit guarantee scheme to guarantee loans to businesses.
7. Provide appropriate technology to monitor the disbursed capital, aid in the process of borrowing and disbursing.
8. To create a suitable framework under the Pradhan Mantri Mudra Yojana to develop an effective system of providing small credit to small and micro businesses effectively.


According to, about 1,65,000 people benefit under this scheme. The government has raised USD $157,400,000 for the scheme since September 1, 2015, where it has been facilitated.


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