In April 2015, the Pradhan Mantri MUDRA Yojana (PMMY) was introduced with the objective of providing micro entrepreneurs and non-farm small businesses with simple, collateral-free microcredit up to Rs 20,00,000.
Banks, microfinance institutions (MFIs), non-banking financial companies (NBFCs), and other financial intermediaries are examples of member lending institutions (MLIs) that offer loans under the PMMY.
Previously, the maximum amount of loan that can be availed of under PM Mudra loan was set at Rs 10,00,000, which will help a lot of micro small and
Loans distributed
Over 47 crore small and new entrepreneurs have benefited from the Pradhan Mantri MUDRA Yojana (PMMY), which has disbursed loans totaling Rs 27.75 lakh crore to date. Rs 47,19,91,954 loans have been approved under the program thus far.
As of November 24, 2023, the Ministry of Finance reports that women had received 30.64 crore (69 per cent) of the 44.46 crore loans authorized under the PMMY. Additionally, as of November 24, 2023, 1.77 lakh (84 per cent) of the 2.09 lakh loans approved under Stand-up India (SUPI) had been given to female entrepreneurs.
Problems in accessing credit
According to the Economic Survey, Micro, Small, and Medium-Sized Enterprises (MSMEs) face a number of difficulties, such as problems with formalization and inclusion, restricted access to capital, markets, technology, and digitalization, infrastructure bottlenecks, and skilling.
IMEs are unable to register on URP and take advantage of government programs since they lack a PAN and GST. In 2023, the Small Industries and Development Bank of India (SIDBI) and the Ministry of MSME launched the Udyam Assist Platform to formalize these businesses. 1.86 crore IMEs had been added to UAP as of June 2024. As of June 3 of this year, over 4.5 crore enterprises were registered on URP and UAP.
In order to facilitate capital formation and advance trade, business, and investment in MSMEs, the Ministry looked to the Indian financial sector. According to the Survey, "new technology development, like the Open Credit Enablement Network (OCEN), is expected to boost credit flow to the MSME sector in the future.
