The Pradhan Mantri Mudra Yojana has completed 11 years of successful implementation, marking a significant milestone in promoting financial inclusion and micro-entrepreneurship across India.
Launched on April 8, 2015 by Prime Minister Narendra Modi, the scheme aims to “Fund the Unfunded” by providing collateral-free loans to small and micro entrepreneurs.
Objective of PMMY
The scheme focuses on supporting:
- Non-corporate, non-farm income-generating activities
- Small businesses and micro enterprises
- First-time entrepreneurs and underserved sections
It is a key pillar of India’s financial inclusion strategy based on:
- Banking the Unbanked
- Securing the Unsecured
- Funding the Unfunded
Key Achievements (As of March 2026)
- Total Loans Sanctioned: 57.79 crore
- Total Amount Disbursed: ₹40.07 lakh crore
Union Finance Minister Nirmala Sitharaman highlighted that:
- Two-thirds of loans were given to women entrepreneurs
- Around 20% loans went to first-time entrepreneurs
- About 12.15 crore loans worth ₹12 lakh crore supported new entrepreneurs
Inclusive Growth and Social Impact
The scheme has significantly contributed to:
- Women empowerment (around 67% beneficiaries)
- Support to SC/ST/OBC communities (over 50% beneficiaries)
- Promotion of self-employment across rural and urban areas
Minister of State for Finance Pankaj Chaudhary emphasised that PMMY has strengthened credit inclusion by connecting borrowers with banks, NBFCs, and MFIs.
Loan Categories Under PMMY
PMMY loans are classified based on business stage:
- Shishu: Up to ₹50,000
- Kishor: ₹50,000 to ₹5 lakh
- Tarun: ₹5 lakh to ₹10 lakh
- Tarun Plus: ₹10 lakh to ₹20 lakh
Category-wise Distribution
- Shishu: 74% (majority of borrowers)
- Kishor: 24%
- Tarun: 2%
- Tarun Plus: Minimal share
Sector Coverage
Loans are provided for:
- Manufacturing, trading, and services
- Allied agriculture activities such as:
- Dairy
- Poultry
- Beekeeping
These loans include both term loans and working capital finance.
Role in MSME Growth
Micro, Small and Medium Enterprises (MSMEs) play a crucial role in:
- Supporting large industries
- Generating employment
- Driving balanced regional development
PMMY has been instrumental in reshaping the MSME credit ecosystem by making financing more accessible.
Digital Transformation and Ease of Access
With advancements in:
- Digital banking
- Data analytics
PMMY has enabled faster loan processing and reduced dependency on informal lenders, protecting small entrepreneurs from exploitation.
Year-wise Growth Trend
The scheme has shown consistent growth:
- Loan sanctions increased from ₹1.37 lakh crore (2015-16)
- To ₹5.65 lakh crore (2025-26)
This reflects rising demand and deeper financial penetration.
Conclusion
Over the past 11 years, PM Mudra Yojana has emerged as a cornerstone of India’s financial inclusion mission, empowering millions of entrepreneurs. By democratizing access to credit, the scheme continues to play a vital role in India’s journey towards becoming a Viksit Bharat by 2047.