The objective of Pradhan Mantri Mudra Yojana (PMMY) is to provide access to institutional finance to new or existing micro unit/ enterprise up to Rs. 10 lakh. This was stated by Union Minister for State for Finance Dr Bhagwat Kisanrao Karad in a written reply to a question in Lok Sabha today.

The Minister also stated the number of loans sanctioned to borrowers under the Scheme in the last two years is as below:

F.Y. 2021-22	F.Y. 2022-23
5,37,95,526	6,23,10,598

All India data, State-wise and UT-wise is placed at ANNEXURE-I.

The Minister stated that under Pradhan Mantri Mudra Yojana (PMMY), collateral-free institutional credit up to Rs. 10 lakh is provided by Member Lending Institutions (MLIs) i.e. Scheduled Commercial Banks (SCBs), Non-Banking Financial Companies (NBFCs) and Micro Finance Institutions (MFIs). Any individual, who is otherwise eligible to take a loan and has a business plan for small business enterprise can avail loan under the Scheme for income generating activities in the manufacturing, trading, service sectors and also for activities allied to agriculture across three loan categories, viz. Shishu (loans up to Rs. 50,000/-), Kishore (loans above Rs. 50,000/- and up to Rs. 5 lakh) and Tarun (loans above Rs. 5 lakh and up to Rs. 10 lakh).

The Minister stated that complaints with regards to implementation of PMMY are redressed in consultation with the respective Banks. The complaints received at the Centralised Public Grievance Redress and Monitoring System (CPGRAMS) are also being taken up with respective Banks for redressal within the prescribed timeline.

Access to institutional finance: PMMY provides collateral-free loans to micro-enterprises and reports increased sanctioned loans. Pradhan Mantri Mudra Yojana provides collateral-free institutional credit through Member Lending Institutions (scheduled commercial banks, NBFCs and MFIs) to new or existing micro units for income-generating activities across manufacturing, trading, services and allied agriculture. Loans are categorised as Shishu, Kishore and Tarun. Reported sanctioned loans rose from 5,37,95,526 in FY 2021-22 to 6,23,10,598 in FY 2022-23. Complaints are taken up with respective banks and CPGRAMS referrals are used to seek redress within prescribed timelines.