Prime Minister Narendra Modi praised the Pradhan Mantri Mudra Yojana (PMMY) for providing accessible opportunities and encouraging initiatives to support dreams. The scheme has transformed over 52 crore job seekers into business owners by bridging the gap between ambition and credit. PMMY offers collateral-free loans up to Rs 20 lakh, empowering individuals to start businesses confidently.
The initiative has funded over 12 crore entrepreneurs with more than Rs 12 lakh crore to support new business ventures. Structured loan categories under PMMY cater to businesses at different growth stages, widening access to credit with over 56 crore loans sanctioned. Women entrepreneurs have been significant beneficiaries, with nearly 65% of Mudra loans extended to them, including support for Self-Help Groups through collateral-free loans.
The scheme has also reached historically excluded communities, with nearly 49% of loans going to SC, ST, and OBC groups. Repeat borrowing trends show growing trust in the scheme, with entrepreneurs returning for higher-value loans. PMMY has facilitated a new generation of first-time entrepreneurs across India, fostering grassroots economic growth and recognizing skill as a form of capital.
Furthermore, PMMY has extended opportunities to Tier 2, Tier 3, and rural regions, fostering inclusion and driving decentralised development. By bringing informal businesses into the credit ecosystem, Mudra is strengthening India’s formal economy. The scheme’s massive expansion of MSME credit supports jobs, production, and decentralised growth.
