The Pradhan Mantri MUDRA Yojana (PMMY) has disbursed more than Rs 40 lakh crore through 57.79 crore loans, as it marks 11 years since its inception. Launched by Prime Minister Narendra Modi in 2015, the scheme targets providing collateral-free loans of up to Rs 20 lakh to micro and small non-corporate, non-farm enterprises.
Finance Minister Nirmala Sitharaman highlighted the scheme’s impact, stating it has transformed the credit landscape for MSMEs and individual entrepreneurs previously excluded from formal banking. She noted that a significant portion of the loans, nearly two-thirds, has been allocated to women entrepreneurs, with about one-fifth going to first-time entrepreneurs.
Under the PMMY, around 12.15 crore loans totaling approximately Rs 12 lakh crore have been granted to new entrepreneurs. Minister of State for Finance Pankaj Chaudhary emphasized the scheme’s role in promoting micro-entrepreneurship and enhancing financial inclusion, particularly benefiting marginalized groups like Scheduled Castes, Scheduled Tribes, Other Backward Classes, and women.
The scheme, categorized into Shishu, Kishor, Tarun, and Tarun Plus based on funding needs, covers term financing and working capital requirements across various sectors, including manufacturing, trading, services, and allied agricultural activities. It aligns with the broader financial inclusion framework focusing on banking the unbanked, securing the unsecured, and funding the unfunded, with the goal of integrating underserved segments into the formal financial system.
The government envisions that PMMY will persist in supporting entrepreneurs and contributing to the ‘Viksit Bharat’ vision by 2047.
