New Delhi, April 8 — The Pradhan Mantri MUDRA Yojana (PMMY), a flagship initiative of the Government of India, has completed 11 years since its launch in 2015, marking a significant milestone in promoting financial inclusion and entrepreneurship across the country. Designed to fund the “unfunded,” the scheme has played a crucial role in supporting micro enterprises and small businesses, particularly first-time entrepreneurs.
Since its inception, the scheme has sanctioned nearly 58 crore loans worth over Rs 40 lakh crore, reflecting its widespread reach and impact. By providing collateral-free credit, PMMY has enabled individuals from diverse socio-economic backgrounds to start and expand businesses, thereby strengthening grassroots economic activity.
A notable feature of the scheme is its strong focus on women empowerment. Approximately two-thirds of the total loans have been extended to women entrepreneurs, highlighting their growing role as key drivers of economic progress. Additionally, around 21 per cent of the loans, amounting to nearly Rs 12,000 crore, have been disbursed to first-time entrepreneurs, encouraging youth and new entrants to pursue business opportunities without the burden of collateral.
The scheme has also demonstrated improved financial discipline, with Non-Performing Assets (NPAs) declining to a low of 2.3 per cent. This has boosted confidence among lending institutions, enabling them to expand credit access while managing risks effectively.
Support to Self-Help Groups (SHGs) has further accelerated inclusive growth, contributing to the rise of “Lakhpati Didis” — women achieving financial independence through entrepreneurship. The increasing participation of women underscores the transformative impact of the scheme on livelihoods and social empowerment.
PMMY’s reach has expanded significantly across Tier 2 and Tier 3 cities as well as rural areas. Over Rs 3.5 lakh crore has been disbursed to more than 6.15 crore beneficiaries, with nearly 49 per cent belonging to SC, ST, and OBC communities, according to data from MyGovIndia.
The scheme operates under four categories — Shishu (up to Rs 50,000), Kishor (Rs 50,000 to Rs 5 lakh), Tarun (Rs 5 lakh to Rs 10 lakh), and Tarun Plus (Rs 10 lakh to Rs 20 lakh) — catering to different stages of business growth.
Over the past decade, PMMY has emerged as a key pillar in fostering entrepreneurship, enhancing financial inclusion, and driving inclusive economic development across India.
