The Pradhan Mantri MUDRA Yojana (PMMY), launched by Prime Minister Shri Narendra Modi on April 8, 2015, has emerged as a transformative initiative in empowering small and micro-entrepreneurs across India. With a clear vision of financial inclusion, PMMY offers easy, collateral-free loans to non-corporate, non-farm income-generating businesses. As the scheme celebrates its 10th anniversary in 2025, it is important to reflect on its significant achievements in fostering entrepreneurship, supporting new businesses, and providing vital credit to underserved sectors.
A Decade of Success: Pradhan Mantri MUDRA Yojana (PMMY)
Over the past decade, PMMY has played a pivotal role in creating a vibrant entrepreneurial ecosystem by offering financial assistance to micro and small enterprises. This initiative has particularly benefited first-generation entrepreneurs, women, and marginalized communities. With the recent announcement of an enhanced loan limit of ₹20 lakh, the government’s commitment to empowering small businesses has been reinforced, paving the way for further economic growth.
One of the most striking aspects of PMMY’s success is its remarkable scale. As of March 21, 2025, PMMY has helped millions of entrepreneurs access vital credit, fueling growth across a wide range of sectors. Let's take a closer look at the key achievements under this landmark scheme.
Key Achievements of PMMY (as of March 21, 2025)
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Women Entrepreneurs
The Pradhan Mantri MUDRA Yojana has been particularly beneficial to women entrepreneurs. In total, ₹8.49 lakh crore has been disbursed under the Shishu category, ₹4.90 lakh crore under the Kishor category, and ₹0.85 lakh crore under the Tarun category. These loans have helped empower countless women to start and scale their businesses, ensuring financial independence and fostering gender equality in the entrepreneurial landscape.
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Minority Entrepreneurs
The scheme has also provided significant support to minority communities, which often face challenges in accessing traditional financial services. Under PMMY, ₹1.25 lakh crore has been disbursed under the Shishu category, ₹1.32 lakh crore under the Kishor category, and ₹0.50 lakh crore under the Tarun category for minority borrowers. These efforts have contributed to promoting economic inclusion and narrowing the financial divide.
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New Entrepreneurs and New Accounts
PMMY has been instrumental in opening doors for new entrepreneurs by facilitating a large number of loan disbursements across its various categories. In the Shishu category, 8.21 crore accounts have been opened with a sanctioned amount of ₹2.24 lakh crore and a disbursed amount of ₹2.20 lakh crore. This category is crucial for aspiring micro-entrepreneurs who require small loans to kick-start their businesses.
In the Kishor category, 2.05 crore accounts have been created, with ₹4.09 lakh crore sanctioned and ₹3.89 lakh crore disbursed. These loans serve as a stepping stone for entrepreneurs who have successfully established their businesses and are looking to expand their operations.
The Tarun category, aimed at more mature businesses, has seen 45 lakh accounts with a sanctioned amount of ₹3.96 lakh crore and ₹3.83 lakh crore disbursed, allowing established micro-enterprises to scale and diversify their operations.
Special Initiatives Under PMMY
Beyond the financial support, several special initiatives have been introduced to further strengthen the scheme’s impact:
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Credit Guarantee Fund for Micro Units (CGFMU)
In 2016, the government set up the Credit Guarantee Fund for Micro Units to secure loans under PMMY, ensuring that lenders face less risk while extending credit to small enterprises. This move has significantly boosted lenders' confidence, resulting in increased disbursements and wider access to financing for micro-enterprises.
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Interest Subvention for Shishu Loans
In a move to make borrowing even more affordable for micro-entrepreneurs, the government introduced an interest subvention of 2% on Shishu loans during FY 2020-21 under the Aatma Nirbhar Bharat Abhiyan. This initiative reduced the cost of credit for eligible borrowers, helping them save on interest payments and thereby improving their cash flow and financial viability.
A Transformative Impact on the Economy
The Pradhan Mantri MUDRA Yojana has undoubtedly made significant strides in bridging the credit gap for micro, small, and medium enterprises (MSMEs), which are the backbone of the Indian economy. By offering accessible and affordable financial products, PMMY has enabled millions of entrepreneurs to realize their business potential and contribute to the national economy. The loans extended under PMMY have also played a crucial role in supporting industries that provide essential goods and services, such as manufacturing, agriculture, trade, and services.
The scheme has also contributed to creating a more inclusive economy, allowing individuals from diverse backgrounds—whether women, minorities, or rural entrepreneurs—to tap into the potential of formal financial channels. As PMMY continues to evolve, its impact on India’s entrepreneurial landscape will only grow stronger.
As we celebrate 10 years of the Pradhan Mantri MUDRA Yojana, the scheme stands as a shining example of the government's commitment to “Funding the Unfunded,” “Banking the Unbanked,” and “Securing the Unsecured.” PMMY has transformed the lives of millions of entrepreneurs, empowering them with the resources they need to succeed. With the new initiatives like the Tarun Plus loan category and enhanced loan limits, PMMY is set to support the next wave of entrepreneurs, driving inclusive growth and economic prosperity across the country. In the years to come, PMMY will continue to be a vital pillar of India's financial inclusion strategy, fueling the dreams of millions of small-business owners and contributing to the nation’s economic success.
