TV
As India celebrates a decade of the Pradhan Mantri Mudra Yojana (PMMY), Prime Minister Narendra Modi on Tuesday congratulated beneficiaries across the country, saying the scheme has empowered countless individuals to pursue entrepreneurship and realise their dreams.
The Prime Minister highlighted the scheme’s inclusivity, noting that half of all Mudra beneficiaries are from SC, ST, and OBC communities.
“It is particularly heartening that half of the Mudra beneficiaries belong to SC, ST and OBC Communities, and over 70% of the beneficiaries are women! Every Mudra loan carries with it dignity, self-respect and opportunity. In addition to financial inclusion, this scheme has also ensured social inclusion and economic freedom,” he said.
Empowering Dreams Through Financial Inclusion
PM Modi also interacted with several beneficiaries, calling their entrepreneurial journeys deeply inspiring. He lauded how the scheme has helped transform ideas into thriving businesses.
“Today, as we mark #10YearsOfMUDRA, I would like to congratulate all those whose lives have been transformed thanks to this scheme. Over this decade, Mudra Yojana has turned several dreams into reality, empowering people who were previously overlooked with the financial support to shine. It illustrates that for the people of India, nothing is impossible!” he said.
The PMMY is a flagship initiative aimed at funding unfunded micro enterprises and small businesses, especially those outside the formal banking ecosystem.
Credit Without Collateral: A Game-Changer
Launched in April 2015 under the Micro Units Development and Refinancing Agency (MUDRA), the scheme was created to facilitate development and refinancing of micro units.
Since inception, the PMMY has sanctioned over 52 crore loans worth ₹32.61 lakh crore, fueling a nationwide entrepreneurial revolution. Business activity has increasingly spread beyond major cities into smaller towns and rural areas, where individuals are stepping up as first-time entrepreneurs.
The scheme provides collateral-free institutional credit up to ₹20 lakh through Member Lending Institutions (MLIs) including Scheduled Commercial Banks, Regional Rural Banks, NBFCs, and Micro Finance Institutions.
Grassroots Businesses Find a Voice
According to a government press release, Mudra has laid the foundation for grassroots entrepreneurship by simplifying credit access and removing collateral requirements.
From stitching units and tea stalls to salons, mechanic shops, and mobile repair businesses, millions of micro-entrepreneurs have gained confidence, backed by a system that believed in their potential.
The scheme primarily targets non-corporate, non-farm micro and small enterprises, forming the backbone of India’s economic engine.
Driving Social Inclusion and Gender Empowerment
At its core, the MUDRA Yojana is a story of trust—trust in people’s dreams and their ability to succeed.
Women account for 68% of all Mudra beneficiaries, underlining the scheme’s strong role in advancing women-led enterprises. Between FY16 and FY25, per-woman disbursement grew at a CAGR of 13%, while per-woman incremental deposits rose at 14% CAGR. States with higher women disbursement shares also saw higher employment generation through women-led MSMEs.
The scheme has also broken traditional credit barriers, with 50% of Mudra accounts belonging to SC, ST, and OBC entrepreneurs, according to an SBI report.
Furthermore, 11% of Mudra loan holders are from minority communities, demonstrating the programme’s success in enabling inclusive growth and ensuring wider participation in the formal economy.
(With IANS inputs)
