The government is promoting entrepreneurship through the Pradhan Mantri Mudra Yojana (PMMY), which provides collateral-free loans of up to ₹20 lakh to individuals and small enterprises for income-generating activities.
Launched on April 8, 2015, the scheme enables eligible individuals with viable business plans to obtain loans through Scheduled Commercial Banks, Non-Banking Financial Companies and Micro Finance Institutions. The loans support businesses in the manufacturing, trading, service sectors and agriculture-allied activities.
Under PMMY, loans are offered in four categories: Shishu (up to ₹50,000), Kishor (₹50,000 to ₹5 lakh), Tarun (₹5 lakh to ₹10 lakh) and Tarun Plus (₹10 lakh to ₹20 lakh). The Tarun Plus category, introduced in 2024-25, is designed for entrepreneurs who have successfully repaid previous loans under the Tarun category.
The scheme has particularly benefited small businesses, traditional enterprises and women entrepreneurs, many of whom lack collateral or formal credit history.
To further simplify access to credit, the government has streamlined the loan application process and introduced digital platforms such as the Jan Samarth Portal, which integrates multiple credit-linked schemes and allows applicants to apply for loans through self-guided or assisted modes.
Nurturing Creativity – Keekli Charitable Trust, Shimla
