The Pradhan Mantri MUDRA Yojana (PMMY) has completed 10 years, marking a decade of empowering small and micro-entrepreneurs in India . Launched on April 8, 2015, by Prime Minister Narendra Modi, the scheme aims to provide financial support to the “unfunded” by offering collateral-free loans .
Key Achievements and Impact:
- Financial Assistance: Over ₹33.65 lakh crore has been sanctioned across more than 52 crore MUDRA loan accounts .
- Loan Categories: MUDRA loans are categorized into Shishu (up to ₹50,000), Kishor (₹50,000 to ₹5 lakh), Tarun (₹5 lakh to ₹10 lakh), and Tarun Plus (₹10 lakh to ₹20 lakh) .
- Focus on Women: Approximately 68% of the total MUDRA loan accounts have been sanctioned to women, promoting women’s entrepreneurship and economic growth .
- Support for Marginalized Communities: A significant portion of loans have been extended to marginalized communities, including Scheduled Castes, Scheduled Tribes, and Other Backward Classes .
- Expanded Loan Limits: The loan limit has been increased to ₹20 lakh with the introduction of the Tarun Plus category, helping entrepreneurs expand their businesses .
- Financial Inclusion: PMMY has played a vital role in financial inclusion by “Banking the Unbanked,” “Securing the Unsecured,” and “Funding the Unfunded” .
- MSME Growth: The scheme supports Micro, Small, and Medium Enterprises (MSMEs) by providing credit for manufacturing, trading, and service sectors .
- Credit Guarantee: The Credit Guarantee Fund for Micro Units (CGFMU) was established in 2016 to secure loans under PMMY .
Challenges and Way Forward:
- Regional Imbalance: There are concerns about the skewed distribution of loans, with some districts receiving a disproportionately high share .
- Financial Literacy: Limited financial literacy among beneficiaries remains a challenge, potentially leading to debt traps .
- Need for Support: Experts suggest strengthening the ecosystem to support borrowers with financial education, digital training, and business advisory services .
Overall, the PMMY has significantly contributed to financial inclusion and entrepreneurship in India, particularly for women and marginalized communities . Addressing the existing challenges and providing comprehensive support to borrowers will be crucial for maximizing the scheme’s impact in the future .
key achievements of PM MUDRA Yojana in 10 years :
In its 10 years, the Pradhan Mantri Mudra Yojana (PMMY) has achieved significant milestones in promoting entrepreneurship and financial inclusion .
Key achievements include:
- Extensive Credit Outreach: Over 52 crore loans have been sanctioned, totaling ₹32.61 lakh crore . This widespread disbursement demonstrates the scheme’s significant reach in providing financial assistance to micro and small enterprises .
- Empowerment of Women: Women constitute 68% of MUDRA beneficiaries, highlighting the scheme’s pivotal role in advancing women-led enterprises across the country . The per woman PMMY disbursement amount has increased at a CAGR of 13% between FY16 and FY25, reaching ₹62,679 .
- Inclusion of Marginalized Groups: 50% of MUDRA accounts are held by entrepreneurs from SC, ST, and OBC categories, ensuring wider access to formal finance . Additionally, 11% of MUDRA loan holders belong to minority communities, demonstrating the scheme’s contribution to inclusive growth .
- Shift in Lending Patterns: The share of Kishor loans (₹50,000 to ₹5 lakh) has grown significantly, from 5.9% in FY16 to 44.7% in FY25, indicating a shift from micro to small enterprises . The Tarun category (₹5 lakh to ₹10 lakh) is also gaining momentum, suggesting that MUDRA is not just about starting businesses but also helping them scale .
- Growth in Loan Sizes: The average ticket size of loans has nearly tripled, rising from ₹38,000 in FY16 to ₹1.02 lakh in FY25, reflecting growing economies of scale and a deepening of market penetration .
- MSME Credit Boost: MSME lending surged from ₹8.51 lakh crore in FY14 to ₹27.25 lakh crore in FY24 and is projected to cross ₹30 lakh crore in FY25 . The share of MSME credit in total bank credit increased from 15.8% in FY14 to nearly 20% in FY24, showcasing its growing role in the Indian economy .
- International Recognition: The International Monetary Fund (IMF) has acknowledged PMMY’s impact in expanding financial access and promoting inclusive entrepreneurship in India .
In summary, PMMY has facilitated significant credit growth, empowered women and marginalized communities, and supported the scaling up of micro-enterprises, contributing to a stronger and more inclusive economy .
