The programme was launched to give access to cheap credit to poor and small fledgling businesspersons.
It will provide loans from public sector, regional, rural, State and urban cooperative banks to non-farm income generating enterprises in manufacturing, trading and services whose credit needs are below Rs.10 lakh.
PMMY can be availed under three categories — Shishu, which will cover loans up to Rs. 50,000; Kishor for loans above Rs. 50,000 and up to Rs.5 lakh; Tarun for loans above Rs.5 lakh and up to Rs.10 lakh.
Mudra debit cards are issued to borrowers. Using these, they can withdraw the loan from any ATM in India, as and when they need the money.