SF Prep Notes

Pradhan Mantri MUDRA Yojana completes 10 years: 52.37 crore loans worth ₹33.65 lakh crore

PMMY, launched on 8 April 2015, completed 10 years on 8 April 2025, having extended over ₹33.65 lakh crore through 52.37 crore collateral-free loans, with nearly 68% of accounts sanctioned to women.

Summary

The Pradhan Mantri MUDRA Yojana (PMMY), launched by Prime Minister Narendra Modi on 8 April 2015, completed 10 years on 8 April 2025. It provides collateral-free loans for non-corporate, non-farm income-generating activities through banks, NBFCs and MFIs. The loan limit, earlier ₹10 lakh, was raised to ₹20 lakh as announced in the Union Budget 2024-25 on 23 July 2024, effective 24 October 2024, with a new 'Tarun Plus' category (₹10 lakh to ₹20 lakh) for borrowers who have availed and repaid Tarun loans; the Credit Guarantee Fund for Micro Units (CGFMU) covers these loans. Loans fall in four categories: Shishu (up to ₹50,000), Kishor (above ₹50,000 up to ₹5 lakh), Tarun and Tarun Plus. Over ₹33.65 lakh crore has been extended through 52.37 crore loans, and according to the Finance Minister nearly 68% of MUDRA loan accounts have been sanctioned to women.

Key facts

Launched
8 April 2015
Loans so far
52.37 crore loans; over ₹33.65 lakh crore
Limit
₹20 lakh (from ₹10 lakh), effective 24 Oct 2024
Categories
Shishu (up to ₹50,000), Kishor (₹50,000-₹5 lakh), Tarun, Tarun Plus (₹10-20 lakh)
Women
nearly 68% of loan accounts
Guarantee
CGFMU

Practice MCQs 4 questions

Q1

When was the Pradhan Mantri MUDRA Yojana launched?

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Correct answer: A — 8 April 2015

8 April 2015; the scheme completed 10 years on 8 April 2025.

Q2

What is the current maximum loan limit under PMMY after the increase announced in the Union Budget 2024-25?

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Correct answer: C — ₹20 lakh

₹20 lakh, raised from ₹10 lakh with effect from 24 October 2024 through the new Tarun Plus category.

Q3 Advanced

Consider the following statements about PMMY: 1. According to the Finance Minister, nearly 68% of MUDRA loan accounts have been sanctioned to women. 2. The Tarun Plus category is open to any first-time borrower. Which of the statements given above is/are correct?

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Correct answer: A — 1 only

Only 1 is correct. Tarun Plus (₹10 lakh to ₹20 lakh) is only for borrowers who have availed and successfully repaid loans under the Tarun category.

Q4

Under PMMY, the Shishu category covers loans up to:

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Correct answer: B — ₹50,000

₹50,000; Kishor covers loans above ₹50,000 and up to ₹5 lakh.

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