On 8th April 2025, India celebrates 10 years of the Pradhan Mantri Mudra Yojana (PMMY)—a flagship initiative launched in 2015 to fund the unfunded by offering collateral-free loans to micro and small enterprises. PMMY has democratized access to finance, transformed livelihoods, and shifted the economic narrative from job-seeking to job-creating, especially in semi-urban and rural India. Today, over 52 crore loans worth ₹32.61 lakh crore have been sanctioned under this transformative scheme, empowering entrepreneurs from all walks of life.
Key Features of PM Mudra Yojana
- Launched: April 8, 2015
- Implementing Agency: MUDRA (Micro Units Development and Refinance Agency)
- Collateral-Free Loans: Up to ₹20 lakh
- Lending Institutions: Banks, NBFCs, MFIs, RRBs
Categories of Loans
- Shishu – Up to ₹50,000
- Kishor – ₹50,000 to ₹5 lakh
- Tarun – ₹5 lakh to ₹10 lakh
- Tarun Plus – ₹10 lakh to ₹20 lakh (for successful repeat borrowers)
Key Achievements in 10 Years
- Total Loans Sanctioned: Over 52 crore
- Total Loan Value: ₹32.61 lakh crore
- Shift from Micro to Small: Share of Kishor loans grew from 5.9% in FY16 to 44.7% in FY25
Growth in Average Loan Size
- FY16: ₹38,000
- FY23: ₹72,000
- FY25: ₹1.02 lakh
Empowering Women Entrepreneurs
- Women’s Share: 68% of total Mudra beneficiaries
Average Disbursement (FY16–FY25)
- Grew at 13% CAGR to ₹62,679
- Incremental deposits grew at 14% CAGR to ₹95,269
- Impact: Enhanced labour force participation and employment generation in states with higher female loan disbursement
Social Inclusion
- SC/ST/OBC & Minority Beneficiaries
- 50% of Mudra accounts held by SC/ST/OBC entrepreneurs
- 11% beneficiaries from minority communities
- Reflects the scheme’s commitment to inclusive growth and financial equality
MSME Growth & Credit Expansion
MSME Credit Growth
- FY14: ₹8.51 lakh crore
- FY24: ₹27.25 lakh crore
- Projected FY25: ₹30 lakh crore
MSME credit as % of total bank credit
- FY14: 15.8%
- FY24: Nearly 20%
Global Recognition by IMF
- 2017: PMMY noted for enabling women-led businesses
- 2019: Praised for supporting micro enterprises
- 2023: Emphasis on women-owned MSMEs (over 2.8 million)
- 2024: Recognized as a driver of self-employment & formalisation
Top States & UTs in Loan Disbursement (as of Feb 28, 2025)
Top 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 loan accounts
Transformation in Lending Pattern
- Rise of Kishor and Tarun categories reflects business scaling
- Indicates a shift from starting up to growing up
- Loan Disbursal Spike: 36% growth in FY23 alone
Mission, Vision & Target Segment
- Targets non-corporate, non-farm micro units
- Covers traders, service providers, manufacturers
- Supports over 10 crore livelihoods, especially in rural and semi-urban India
PM Modi’s Message
PM Congratulates Beneficiaries
- Acknowledged the transformational impact of the scheme.
- Celebrated the stories of individuals whose dreams became reality through Mudra loans.
- Called the scheme an example of India’s potential where “nothing is impossible.”
Inclusive Empowerment
- 50% of beneficiaries belong to SC, ST, and OBC categories—showing how the scheme has reached socially marginalized communities.
- Over 70% of beneficiaries are women—making it one of the largest women-centric financial inclusion programmes globally.
Dignity and Opportunity
- Every Mudra loan, as PM said, carries “dignity, self-respect, and opportunity.”
- The scheme has not just provided credit access, but also fostered social and economic inclusion.
Vision for the Future
- The government remains committed to strengthening the entrepreneurial ecosystem.
- PM emphasized the need to give every aspiring entrepreneur—regardless of their background—the confidence and opportunity to grow through credit access.
