What is the basic purpose of the mudra loan

The basic purpose of the Pradhan Mantri Mudra Yojana (PMMY) is to "fund the unfunded" by providing formal credit to small and micro-enterprises. It aims to:

• Provide collateral-free loans up to Rs. 10 lakh (and up to Rs. 20 lakh under Tarun Plus) for non-corporate, non-farm small businesses.
• Promote entrepreneurship and self-employment among youth and underprivileged sections.
• Integrate the informal economy into the formal financial sector.
• Support income-generating activities in manufacturing, trading, services, and activities allied to agriculture.
• Facilitate business expansion and technology upgradation for micro-units.