New Delhi – As India celebrates 10 years of the Pradhan Mantri MUDRA Yojana (PMMY), Prime Minister Narendra Modi extended heartfelt congratulations to all beneficiaries. Launched on April 8, 2015, the flagship initiative has redefined access to credit for micro and small enterprises, laying the foundation for grassroots entrepreneurship across India.
With over 52 crore loans sanctioned worth ₹32.61 lakh crore, the MUDRA loan scheme has not only funded the unfunded but also sparked an entrepreneurship revolution in both rural and urban India.
What is PM MUDRA Yojana?
The Pradhan Mantri MUDRA Yojana (PMMY) was launched in 2015 to provide collateral-free institutional credit to non-corporate, non-farm micro and small businesses. Implemented through MUDRA (Micro Units Development and Refinance Agency), the scheme offers loans via:
- Scheduled Commercial Banks (SCBs)
- Regional Rural Banks (RRBs)
- NBFCs
- Micro Finance Institutions (MFIs)
Loan Categories under PMMY
| Category | Loan Amount Range |
|---|---|
| Shishu | Up to ₹50,000 |
| Kishor | ₹50,000 – ₹5 lakh |
| Tarun | ₹5 lakh – ₹10 lakh |
| Tarun Plus | ₹10 lakh – ₹20 lakh (for repeat borrowers) |
PM MUDRA Yojana Key Achievements (2015–2025)
Loan Disbursement Highlights
- Total Loans Sanctioned: 52+ crore
- Total Amount Disbursed: ₹32.61 lakh crore
- Loan Disbursal Growth (FY23): 36%
- Average Loan Size:
- FY16: ₹38,000
- FY23: ₹72,000
- FY25: ₹1.02 lakh
MSME Credit Boom
- FY14: ₹8.51 lakh crore
- FY24: ₹27.25 lakh crore
- FY25 (Projected): ₹30 lakh crore
- MSME Credit as % of Total Bank Credit:
- FY14: 15.8%
- FY24: Nearly 20%
Women Empowerment Through MUDRA Loans
Women account for 68% of PMMY beneficiaries, making it one of the largest women-centric financial inclusion programs globally. Between FY16 and FY25:
- Average loan disbursed to women: Grew at 13% CAGR to ₹62,679
- Incremental deposits by women borrowers: Rose at 14% CAGR to ₹95,269
States with higher disbursement to women have reported greater labor force participation and employment growth.
Social Inclusion: Uplifting Marginalized Communities
The MUDRA Yojana has been instrumental in reaching socially disadvantaged groups:
- 50% of Mudra accounts belong to SC/ST/OBC entrepreneurs
- 11% beneficiaries are from minority communities
This reflects PMMY’s mission of inclusive growth and financial equity across castes and communities.
International Recognition of PMMY
The International Monetary Fund (IMF) has praised the scheme over the years for its role in:
- 2017 – Enabling women-led businesses
- 2019 – Supporting micro-enterprises in India
- 2023 – Growing women-owned MSMEs (2.8 million+)
- 2024 – Driving self-employment and formalisation
Top States & UTs by Loan Disbursement (as of Feb 28, 2025)
Top Performing States
- Tamil Nadu – ₹3.23 lakh crore
- Uttar Pradesh – ₹3.14 lakh crore
- Karnataka – ₹3.02 lakh crore
- West Bengal – ₹2.82 lakh crore
- Bihar – ₹2.81 lakh crore
- Maharashtra – ₹2.74 lakh crore
Top Union Territory
- Jammu & Kashmir – ₹45,815.92 crore across 21.33 lakh accounts
Impact Stories: Dreams Turned into Reality
Across India, millions of micro-entrepreneurs have built thriving businesses:
- Kamlesh, a home-based tailor in Delhi, expanded her workshop and hired three women
- Bindu, who once produced 50 brooms a day, now heads a unit making 500 daily
These stories showcase MUDRA’s transformative impact on livelihoods, local employment, and self-reliance.
Mission, Vision & Purpose of PMMY
- Mission: Fund the unfunded; support micro and small enterprises
- Target Segment: Non-corporate, non-farm, micro units in trade, services, and manufacturing
- Goal: Empower 10+ crore livelihoods, especially in rural and semi-urban India
PM Modi’s Statement on 10 Years of MUDRA Yojana
Prime Minister Narendra Modi hailed the scheme’s decade-long journey as an example of India’s growing entrepreneurial spirit. He noted that:
“Every MUDRA loan carries dignity, self-respect, and opportunity. It shows that nothing is impossible when we trust our people.”
He reaffirmed the government’s commitment to building a robust entrepreneurial ecosystem, empowering citizens from all walks of life to turn aspirations into enterprises.
Shift from Micro to Small Enterprises
Over the years, there’s been a clear rise in Kishor and Tarun category loans:
- Kishor share grew from 5.9% in FY16 to 44.7% in FY25
- Tarun category gaining momentum shows business scaling, not just starting
Conclusion:
In just a decade, PM MUDRA Yojana has helped India move from a credit-starved informal sector to a vibrant network of job-creating micro-enterprises. With financial inclusion, women empowerment, and MSME growth at its core, the scheme has proven that democratizing access to finance can reshape the nation’s future.
From tea stalls to textile units, from mobile repair shops to mechanic garages—MUDRA has enabled entrepreneurship to thrive where it was once unthinkable.
