PMMY Eligibilities

To benefit from the PMMY Scheme, the individual must be an Indian citizen. The loans are primarily intended for those who have a business plan in a non-farming sector with income-generating activities such as the following:

• Manufacturing
• Processing
• Trade
• Service Sector
• or any other field with a credit requirement of less than ten lakh rupees.

To obtain MUDRA Loans under the PMMY Scheme, Indian citizens must go through an MFI, bank, or NBFC.

Some of the Major Goals of Pradhan Mantri Mudra Yojana:

Providing funding for the Unfunded: To make loans of up to ten lakh rupees to persons who have a business plan to earn revenue from a non-farm activity such as manufacturing, processing, commerce, or the service sector but lack the necessary capital.

Reducing jobless economic growth: To help generate sources of employment and raise overall GDP by giving financing to microenterprises.

Monitoring and regulating Microfinance Institutions (MFI): The network of microfinance institutions will be monitored, and new registrations will be made, with the assistance of MUDRA bank.

Integration of the Informal Economy into the Official Sector: It will assist India in expanding its tax base because income from the informal sector is not taxed.

Promoting financial Inclusion: PMMY expands on the idea of financial inclusion by aiming to give last-mile credit to micro-businesses through technology solutions.