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Financial InclusionDepartment of Financial Services, Ministry of Finance

PMMY (Pradhan Mantri MUDRA Yojana)

Scheme that provides collateral-free institutional credit to non-corporate, non-farm micro and small enterprises through three product categories: Shishu (up to ₹50,000), Kishore (₹50,000–5 lakh) and Tarun (₹5 lakh–10 lakh).

Why UPSC tests this

Tested on the three product categories, that MUDRA Bank refinances rather than lends directly, and that the scheme is implemented through banks, NBFCs, MFIs and SFBs.

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    PMEGP Provides Higher Subsidy and Lower Own contribution for SC and Rural Beneficiaries

    This PIB release details three key government schemes: PMEGP, NSSH, and PMMY. It highlights PMEGP's focus on rural employment generation and benefits for SC beneficiaries. The NSSH scheme aims to empower SC/ST entrepreneurs in public procurement, while PMMY provides collateral-free institutional credit across four dist…

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Past UPSC Prelims questions on this

  1. UPSC Prelims 2020history

    With reference to the history of India, consider the following pairs : Famous Place — Present State 1. Bhilsa — Madhya Pradesh 2. Dwarasamudra — Maharashtra 3. Girinagar — Gujarat 4. Sthanesvara — Uttar Pradesh Which of the pairs given above are correctly matched ?

    Practice more on ancient medieval
  2. UPSC Prelims 2016economics

    Pradhan Mantri MUDRA Yojana is aimed at

    Practice more on money and banking

Frequently asked

What are the three categories under PMMY?
Shishu (up to ₹50,000), Kishore (₹50,001 to ₹5 lakh), and Tarun (₹5 lakh to ₹10 lakh).
Does MUDRA Bank lend directly to borrowers?
No. MUDRA Bank refinances banks, NBFCs, MFIs and SFBs, which then on-lend to micro-enterprises.
Is MUDRA loan collateral-free?
Yes — the scheme's defining feature is collateral-free credit.

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Last updated 9 May 2026.