New Delhi, April 8 India on Tuesday marks ten years of the Pradhan Mantri MUDRA Yojana (PMMY), the flagship programme of Prime Minister Narendra Modi aimed at funding the unfunded micro enterprises and small businesses.
PMMY, under the Micro Units Development and Refinancing Agency (MUDRA), was set up by the Centre for the development and refinancing activities relating to micro units.
Since its launch in April 2015, the PMMY has sanctioned over 52 crore loans worth Rs 32.61 lakh crore, fuelling a nationwide entrepreneurial revolution. Business growth is no longer confined to big cities -- it is spreading to small towns and villages, where first-time entrepreneurs are taking charge of their destinies. The shift in mindset is evident: people are no longer job seekers; they are becoming job creators.
The scheme ensures that collateral-free institutional credit up to Rs 20 lakh is provided by Member Lending Institutions (MLIs), i.e., Scheduled Commercial Banks (SCBs), Regional Rural Banks (RRBs), Non-Banking Financial Companies (NBFCs) and Micro Finance Institutions (MFIs).
According to a government press release, Mudra has laid the foundation for a new era of grassroots entrepreneurship by removing the burden of collateral and simplifying access. From stitching units and tea stalls to salons, mechanic shops, and mobile repair businesses, crores of micro-entrepreneurs have stepped forward with confidence, enabled by a system that believed in their potential.
PMMY has supported these journeys by offering institutional credit to non-corporate, non-farm micro and small enterprises that form the backbone of India’s economy.
At its core, the MUDRA Yojana is a story of trust. Trust in people’s aspirations and in their ability to build. Trust in the belief that even the smallest dreams deserve a platform to grow, officials said.
Women account for 68 per cent of all Mudra beneficiaries, underscoring the scheme’s pivotal role in advancing women-led enterprises across the country.
Between FY16 and FY25, the per-woman PMMY disbursement amount increased at a CAGR of 13 per cent, reaching Rs 62,679, while per-woman incremental deposits grew at a CAGR of 14 per cent to Rs 95,269. States with higher disbursement shares to women have recorded significantly higher employment generation through women-led MSMEs, reinforcing the effectiveness of targeted financial inclusion in enhancing women’s economic empowerment and labour force participation.
The scheme has made significant progress in breaking traditional credit barriers. According to the SBI report, 50 per cent of Mudra accounts are held by SC, ST and OBC entrepreneurs, ensuring wider access to formal finance.
Furthermore, 11 per cent of Mudra loan holders belong to minority communities, demonstrating the scheme’s contribution to inclusive growth by enabling marginalised communities to become active participants in the formal economy.
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