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GS3 · Banking

Mudra: collateral-free loans up to ₹20 lakh

1 min readMSMEs
Battle IAS current affairs title card: Mudra: collateral-free loans up to ₹20 lakh (GS3 · Banking, 14 March 2026)

What happened

  • PMMY, launched on 8 April 2015, extends collateral-free credit up to ₹20 lakh through banks, NBFCs and MFIs [PIB].

Background

  • DFS says the process is simplified for timely disbursal [PIB].

Why it matters

  • Collateral-free credit is the point; most small borrowers have nothing to pledge.

How to use this in Mains

GS-III Infrastructure: energy, ports, roads, airports, railways; investment models

  1. As per PIB (2026-03-14): PMMY, launched on 8 April 2015, extends collateral-free credit up to ₹20 lakh through banks, NBFCs and MFIs.
  2. Collateral-free credit is the point; most small borrowers have nothing to pledge.
Quotable data point

PMMY, launched on 8 April 2015, extends collateral-free credit up to ₹20 lakh through banks, NBFCs and MFIs.

PIB: Mudra, 14 Mar 2026

Exam angle

UPSC

Prelims: Mudra limit.

Practice MCQs

Original practice questions (not PYQs).

Practice · UPSC

Maximum Mudra loan (2026)

Answer (b) & explanation

PIB.

Go deeper

ExplainerMSMEs in India: New Definition, Share in GDP and Jobs, Udyam, Key Schemes (CGTMSE, PMEGP, TReDS), Problems and Reforms (UPSC Notes + PYQs)

Official source: PIB: Mudra, 14 Mar 2026

facts from cited sources only; faculty review pending