New Delhi: Today marks the 10th anniversary of the Pradhan Mantri Mudra Yojana (PMMY). Launched in 2015, PM Mudra Yojana was envisioned by Prime Minister Narendra Modi to provide financial access to small businesses and micro enterprises, especially those traditionally excluded from the formal banking system.
Since the inception of PM Mudra Yojana, the scheme has empowered entrepreneurial growth across India. The scheme has unlocked opportunities for millions of first-generation entrepreneurs across India’s towns and villages by removing the need for collateral and simplifying access to institutional credit.
Over 52 Crore Loans Worth Rs 32.61 Lakh Crore Sanctioned
According to official data, over 52 crore loans, amounting to Rs 32.61 lakh crore, have been sanctioned under the PM Mudra Yojana in the last decade.
These loans have supported small businesses ranging from tailoring units and tea stalls to mechanic shops, salons, and mobile repair centers— enterprises that form the backbone of India’s economy.
Helping Businesses Scale Up
Mudra loans are divided into three categories: Shishu (up to Rs 50,000), Kishor (Rs 50,000 to Rs 5 lakh), Tarun (Rs 5 lakh to Rs 10 lakh), and Tarun Plus (Rs 10 lakh to Rs 20 lakh). Over the years, the Kishor and Tarun categories have seen rapid growth, indicating that Mudra is not just helping people start businesses but also scale them up.Â
According to an SBI report, MSME lending has risen from Rs 8.51 lakh crore in FY14 to Rs 27.25 lakh crore in FY24 and is projected to cross Rs 30 lakh crore in FY25. MSME credit now constitutes nearly 20 per cent of total bank credit, reflecting PMMY’s role in strengthening India’s self-reliant economy and promoting grassroots job creation.
Employment Generation at Scale
The transformative impact of PMMY on employment has been substantial. According to the ‘Outcomes of ModiNomics 2014-24’ report by SKOCH, the scheme has generated an average of 2.52 crore person-years of steady employment every year since its inception.Â
Particularly in regions like Jammu & Kashmir, PMMY has brought about significant socio-economic change. Over 20.72 lakh loans have been sanctioned in J&K alone, fostering local entrepreneurship and financial independence.
Empowering Women Entrepreneurs
One of the standout features of the Mudra Yojana has been its role in women’s empowerment. Nearly 70 per cent of all Mudra loans have been availed by women entrepreneurs, helping them achieve financial independence and contributing to gender equality.
Data from the Finance Ministry shows that over the last nine years, the average disbursement per woman under PMMY has grown at a Compound Annual Growth Rate (CAGR) of 13 per cent, reaching Rs 62,679, while their incremental deposits have grown by 14 per cent CAGR to Rs 95,269.
Global Recognition and Impact
The International Monetary Fund (IMF) has lauded the Mudra Yojana for its role in fostering women-owned MSMEs, which now stand at over 2.8 million. A 2024 IMF report highlighted that India’s enabling policy environment, through programs like PMMY, is driving self-employment, entrepreneurship, and formalisation in the economy.
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