The Pradhan Mantri MUDRA Yojana (PMMY) has completed 11 years, supporting micro enterprises and small businesses. Launched in 2015, the program has provided over 58 crore loans totaling more than Rs 40 lakh crore. Notably, two-thirds of these loans have gone to women entrepreneurs, with around one-fifth benefiting first-time entrepreneurs.
The scheme, offering collateral-free credit, has significantly impacted India’s economy by encouraging the growth of new entrepreneurs, especially women and underserved communities. Around 21% of the total loans, amounting to Rs 12,000 crore, have been allocated to new entrepreneurs, fostering a conducive environment for their development.
Financial discipline has improved with the scheme, evident in the Non-Performing Assets (NPA) decreasing to a record low of 2.3%. This reduction has allowed banks to extend loans to more individuals while managing risks effectively. Additionally, Self-Help Groups (SHGs) have received collateral-free loans up to Rs 20 lakh crore, empowering women entrepreneurs and contributing to economic progress.
The Pradhan Mantri MUDRA Yojana has facilitated the growth of micro-entrepreneurs, with a significant portion of loans supporting micro businesses. The scheme operates under four categories based on funding needs, ranging from Shishu for smaller loans to Tarun Plus for larger amounts. Notably, the program has reached Tier 2, Tier 3 cities, and rural areas, disbursing over Rs 3.5 lakh crore to 6.15 crore beneficiaries, with a focus on SC/ST and OBC groups.
