CURRENT AFFAIRS

Detailed explanation-1: -PMMY is essentially a self-employment and entrepreneurship promotion scheme launched by Prime Minister Narendra Modi in 2015. It targets micro enterprises, which are generally proprietary concerns, and individual businesses at the bottom of the entrepreneurial pyramid seeking loans up to Rs 10 lakh.

Detailed explanation-2: -Pradhan Mantri MUDRA Yojana (PMMY) Shishu : covering loans upto 50, 000/- Kishor : covering loans above 50, 000/- and upto 5 lakh. Tarun : covering loans above 5 lakh and upto 10 lakh.

Detailed explanation-3: -Pradhan Mantri Mudra Yojana is a Government of India scheme, which enables a small borrower to borrow from banks, MFIs, NBFCs for loans upto 10 lakh for non farm income generating activities. Generally, loans upto ‘ 10 lakh issued by banks under Micro Small Enterprises is given without collaterals.

Detailed explanation-4: -The government has set the loans disbursement target under the PM Mudra Yojana (PMMY) at Rs 3 trillion for the current financial year as compared to Rs 3.21 trillion sanctioned in FY21. Experts attribute the lower target to increased allocation under the credit guarantee scheme for small businesses.

Detailed explanation-5: -Tarun – Loans from Rs. 5, 00, 000 up to Rs. 10, 00, 000. The interest rate would depend on the bank, as per the guidelines of the schemes and keeping in view the applicant’s credit history.