How does Mudra Yojana provide new opportunities for women and the youth?

Here Are The Top Benefits Of Pradhan Mantri Awas Yojana Scheme

The Pradhan Mantri Mudra Yojana or the PMMY was launched by our honourable Prime Minister on the 8th of April, 2015.  Pradhan Mantri Mudra loan provides opportunities for the micro units to avail loans of up to Rs. 10 Lakhs. The scheme is directed towards the women and youth other than also promoting the upliftment of the SC, ST and other backward classes.

Under the patronage of the PMMY, Mudra created three sections, ‘Shishu’, ‘Kishore’ and ‘Tarun’. The scheme facilitates borrowers as per these stages of development which also determine the financing provided to the beneficiary micro units or entrepreneurs.

The Mudra loan can provide the vital financial assistance for your business if you want to know how to build the right workforce for a small business like yours. To apply for a mudra loan, the individual needs to approach any of the designated lending institutions or can also apply online.

The 3 sections along with the Mudra loan eligibility have been discussed in detail as follows.

  • Shishu

Loans up to Rs.50,000 are available under this Mudra loan category, primarily to cater to the entrepreneurs who are at the beginning of their career and require lesser funds.


  • Requires quotation for machinery and items to be purchased.
  • Machinery details.
  • Kishore

Kishore Mudra loans offer advances of up to Rs.5 Lakh. These are mainly directed towards entrepreneurs who already have a business and require additional finances for it.


  • Account statements for the last 6 months.
  • Last 2 years balance sheet.
  • Returns on income/sales tax.
  • Balance sheet estimated for 1 year.
  • Articles of association and memorandum.
  • Sales made before the filing of loan application.
  • Tarun

Loans of up to Rs.10 Lakh are available under this section and require entrepreneurs to meet certain eligibility criteria which determine whether the person is qualified to avail the loan.


  • Same as Kishore (previous section)
  • Address proof
  • Identity proof
  • SC/ST/OBC certificate

Objectives of the Mudra Yojana

There were certain objectives which lead to the initiation of the Mudra Loan. Some of the main objectives of the PMMY scheme have been given below:

  • Lay down policy guidelines to finance small/micro enterprises.
  • Register all the microfinance institutions and the related entities.
  • Assist in the development of small businesses.
  • Create easy access to finance for those who are unbanked.
  • To help empower the women and youth of the country.
  • Provide ample financial solutions to SC/ST borrowers.

Benefits for the youth and women

The PMMY scheme aims to benefit a huge section of the Indian demography, but it especially aims to benefit women and the youth. The Mudra Yojana will provide ample financial support to young skilled entrepreneurs and help them succeed in feasible business expansion.

The Mudra scheme also encouraged a large number of women to start their own business. Around 70% of the beneficiaries are women. Financial institutions consider to extend certain additional facilities to facilitate the women of the country, such as reduction in the interest rates of the loans. According to the Mudra scheme, there was an allowed reduction in the interest rates to loans for women by up to 25 bps.

Loans taken under the Mudra scheme do not require collateral. This ensures that even people without substantial assets can avail a loan, a helpful step forward for fledgling entrepreneurs. 

The PMMY aims to provide subsidised and formal access to credit for SMEs and MSMEs. The Mudra scheme has offered a benefit of more than Rs. 2 Crore to support the growth of small businesses. According to reports, the PMMY scheme has helped more than 58 million small businesses across the country who fulfilled the mudra loan eligibility.

The Mudra Yojana is a landmark scheme which has helped a large number of women and youth of this country to start their own business. The PMMY also benefited a vast diversity of SMEs and MSMEs. It has successfully created a stepping stone to promote a strong future economic base for the country. And several other financial lenders across the country is only facilitating the idea.

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