10 Years Of PM MUDRA Yojana

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.