Topics
250 words
Named thing
Scheme

Pradhan Mantri Mudra Yojana (PMMY)

Pradhan Mantri Mudra Yojana is a financial inclusion initiative that provides collateral-free micro-credit up to ten lakh rupees to non-corporate, non-farm small and micro-enterprises through member lending institutions.

Why it matters

  • It addresses the credit deficit in the unorganized sector by categorizing loans into Shishu, Kishore, and Tarun tiers based on the growth stage of the enterprise.
  • The scheme accelerates economic empowerment and self-employment, particularly among women and socio-economically marginalized groups, by enabling access to formal capital.
  • It facilitates the integration of informal micro-units into the formal banking architecture, aiding structural economic reform and last-mile credit expansion.

How it is asked

UPSC frames questions on this topic primarily within the framework of inclusive growth, institutional credit access, and employment generation under GS Paper III. Analytical prompts often require candidates to evaluate the scheme's performance against challenges such as asset quality risks, micro-loan non-performing assets, and credit absorption constraints. Questions may also ask for structural solutions to improve capital efficiency and credit guarantee support for first-generation micro-entrepreneurs.

Where it sits

Coverage

Nothing filed against Pradhan Mantri Mudra Yojana (PMMY) yet. As the day’s reading is published, entries that touch it collect here, newest first.

Other schemes