PMMY AND SUPI SCHEMES (Syllabus: GS Paper 2 – Govt Schemes)

News-CRUX-10     19th December 2023        
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Context: Recently, the government's initiatives to empower women received a significant boost, particularly in rural areas, as women secured a substantial portion of loans through the Pradhan Mantri Mudra Yojana (PMMY) and Stand-Up India (SUPI).

Pradhan Mantras Mudra Yojana Scheme

  • About: Initially, Pradhan Mantri Mudra Yojana (PMMY) offers unsecured loans of up to 10 lakh to small/micro enterprises that are non-corporate and non-farm in nature.
  • Launched: In 2015
  • Objective: To encourage young people to become 1st generation entrepreneurs.
  • Eligible Banks for Loan: Banks, NBFCs, Micro finance Institutions (MFIs) and financial intermediaries as notified by MUDRA Ltd.
  • Loan Instruments

oShishu: covers loans up to Rs 50,000/-

oKishor: covers loans above Rs 50,000/- and upto Rs. 5 lakh

oTarun: covers loans above Rs 5 lakh and up to Rs 10 lakh

Stand-Up India Scheme

  • Launched: On 5th April 2016
  • Nodal Ministry: Ministry of Finance
  • Aim: To foster entrepreneurship at the grassroots level, emphasizing economic empowerment and the generation of employment opportunities.
  • An extension of this scheme has been granted until the year 2025.
  • Facilitates Bank Loans: To motivate all bank branches to offer loans. Prospective applicants can apply for the scheme through the following channels:

oIn person at the branch.

oVia the Stand-Up India Portal

oThrough the Lead District Manager (LDM).