PM Mudra Yojana Marks 11 Years of Supporting Small and Micro Entrepreneurs

India is celebrating 11 successful years of the Pradhan Mantri Mudra Yojana (PMMY), a major government scheme that has helped millions of small entrepreneurs start and grow their businesses. Launched on April 8, 2015, by Narendra Modi, the scheme focuses on providing easy, collateral-free loans to people who were earlier unable to access formal banking services.

What is Pradhan Mantri Mudra Yojana?

The Pradhan Mantri Mudra Yojana is a government initiative that provides loans of up to Rs.20 lakh to small and micro businesses. It mainly supports non-corporate and non-farm sectors such as small shops, service providers and rural businesses.

The main aim of the scheme is “Fund the Unfunded”, meaning to help those who were earlier ignored by banks and financial institutions.

Importance of MSMEs in India

Micro, Small and Medium Enterprises plays a very important role in India’s economy. They:

• Create jobs for millions of people
• Support big industries
• Help in balanced development of cities and villages
• Meet both local and global market demands

Because of their importance, schemes like PMMY are crucial for their growth.

Key Features of PMMY

The scheme offers loans in four categories based on the stage of business:

• Shishu: Loans up to Rs.50,000
• Kishor: Loans from Rs.50,000 to Rs.5 lakh
• Tarun: Loans from Rs.5 lakh to Rs.10 lakh
• Tarun Plus: Loans from Rs.10 lakh to Rs.20 lakh

These loans are:

• Given without any collateral
• Available for manufacturing, trading and service sectors
• Also cover activities like dairy, poultry, and beekeeping
• Offered with flexible repayment options as per RBI guidelines

Major Achievements in 11 Years

Over the last decade, PMMY has made a big impact:

• 57.79 crore loans have been given
• Total loan amount reached Rs.40.07 lakh crore
• Around two-thirds of loans went to women entrepreneurs
• About one-fifth loans were given to first-time entrepreneurs

This show how the scheme has helped common people become business owners.

Support for Women and Weaker Sections

The scheme has especially helped:

• Women entrepreneurs (around 67% beneficiaries)
• SC/ST and OBC communities (about 51% beneficiaries)
• Small and first-time business owners

This has increased financial inclusion and reduced dependence on local money lenders.

Government’s View on the Scheme

Finance Minister Nirmala Sitharaman said that PMMY has brought a “silent transformation” in the country by giving confidence to millions of people to start their own businesses.

Minister of State for Finance Pankaj Chaudhary also highlighted that the scheme has created self-employment opportunities and reduced exploitation by informal lenders.

Three Main Pillars of Financial Inclusion

The success of PMMY is based on three important goals:

• Banking the Unbanked: Bringing people into the banking system
• Securing the Unsecured: Providing financial protection
• Funding the Unfunded: Giving loans to those without access

These pillars ensure that even the poorest sections can grow financially.

Year-Wise Growth of the Scheme

Over the years, the scheme has grown steadily. From Rs.1.37 lakh crore in 2015-16, the loan amount has increased to over Rs.5.65 lakh crore in 2025-26 (till March 2026). This shows rising trust and demand for the scheme.