Ten Years of Pradhan Mantri Mudra Yojana

The Pradhan Mantri Mudra Yojana (PMMY) was launched on 8th April 2015 by Prime Minister Narendra Modi for the support of small and micro-business owners in India. The scheme will complete 10 years of changing lives by offering financial assistance to millions of entrepreneurs in 2025.

What is PMMY?

The PMMY scheme provides loans without requiring any collateral or security, which makes it simpler for individuals to start or grow their small businesses. They are the same people who usually find it hard to get loans from ordinary banks.

The core aim of PMMY is “Funding the Unfunded,” which means reaching out to those who have never had access to formal credit and helping them fulfil their entrepreneurial dreams.

Loan Categories under PMMY

PMMY offers loans based on the size and needs of a business. These loans are divided into four categories:

Shishu: Up to Rs. 50,000 in loans for extremely small and new businesses starting up.

Kishor: Between Rs. 50,000 and Rs. 5 lakh loans for businesses that have already started but require additional assistance to expand.

Tarun: Between Rs. 5 lakh and Rs. 10 lakh loans for well-established small businesses wanting to grow.

Tarun Plus (New segment): Rs. 10 lakh to Rs. 20 lakh loans for entrepreneurs who have already settled earlier loans and are prepared to grow further

These loans are not only limited to shops or services but can also be used for income-generating activities in areas like trading, manufacturing, poultry, dairy, beekeeping, and more.

Key Features of PMMY

No Collateral Needed: The borrowers are not required to give any security to obtain the loan; hence, it is available to all.

Multiple Lending Institutions: The loans are provided through banks, Non-Banking Financial Companies (NBFCs), and Microfinance Institutions (MFIs).

Flexible Repayment Options: Borrowers are given convenient repayment terms that suit their business flow.

Focus on Business Use: These loans are meant for business-related activities and not for personal use, ensuring they support income generation.

Big Achievements in 10 Years

In just a decade, PMMY has made a remarkable difference:

More than Rs. 33.65 lakh crore worth of loans have been approved to small entrepreneurs all over the country.

Over 52.37 crore loan accounts have been opened under this scheme.

68% of all Mudra loan accounts were sanctioned to women entrepreneurs, helping them become financially independent.

Around 50% of the loans were disbursed to the people who belong to Scheduled Castes (SC), Scheduled Tribes (ST), and Other Backward Classes (OBCs), thereby supporting Underserved members.

Category-wise Breakup (Number of loans and amount sanctioned)

Year-wise Progress of PMMY

Provisional data as of 31 March 2024

Overall, in these 10 years, PMMY has touched and transformed the lives of crores of Indians. It has given them not only money but also hope, opportunity, and pride.

The scheme truly reflects the vision of “Sabka Saath, Sabka Vikas, Sabka Vishwas, and Sabka Prayaas.” It is not only a financial program but a major advancement towards a self-reliant and inclusive India.