New Delhi, April 7 As the Pradhan Mantri Mudra Yojana (PMMY) completes 10 years on April 8, M. Nagaraju, Secretary, Department of Financial Services (DFS) in the Union Finance Ministry, on Monday said that the scheme has touched a historic milestone of sanctioning over Rs 32.6 lakh crore through more than 52 crore loans.
The scheme has significantly contributed to self-employment and entrepreneurship across India, he said.
"The scheme has made a deep impact in the lives of people, especially women, SC/ST, OBC, and those in rural areas who lacked access to collateral and formal credit,” Nagaraju told IANS.
"Many beneficiaries had neither land nor collateral nor any financial track record. Yet, they got support through PM Mudra Yojana and have gone on to start and expand their businesses," he added.
Highlighting the economic empowerment brought in by the scheme, Nagaraju said: "More than 20 per cent of beneficiaries are first-time entrepreneurs. These are people who had never taken a loan from any bank or financial institution before. This is a big transformation."
He added that the scheme’s strong recovery rate, with NPAs at just 2.21 per cent as of last month, reflects the credit discipline among borrowers.
"Despite being collateral-free, the repayment record is impressive. This shows people are using Mudra loans wisely and for productive purposes," Nagaraju told IANS.
To further strengthen the ecosystem, DFS has introduced new schemes like ‘Tarun Plus’, under which eligible individuals can now avail loans up to Rs 20 lakh without any guarantee.
"We have also brought ‘Mudra Homestay’ into the fold to support tourism-related ventures under the scheme," he added.
Data from the Finance Ministry reveals that nearly 70 per cent of Mudra loans have been availed by women entrepreneurs which highlighted the role the scheme has played in promoting financial inclusion and gender equality.
In states like Jammu & Kashmir alone, over 20.7 lakh loans have been sanctioned, showing the widespread outreach of the scheme.
The International Monetary Fund (IMF) has also praised the scheme in its 2024 report, stating that Mudra has boosted the number of women-owned MSMEs and contributed to the formalisation of the Indian economy through self-employment.
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