India recently celebrated 10 years of the PM Mudra Yojana (PMMY), a flagship scheme launched in April 2015 by Prime Minister Narendra Modi to support small businesses and micro enterprises. The scheme has been instrumental in promoting grassroots entrepreneurship by providing accessible, collateral-free credit to individuals previously excluded from the formal financial system.
A Decade of Transforming Lives
Over the last 10 years, PMMY has sanctioned over 52 crore loans worth ₹32.61 lakh crore, helping millions of aspiring entrepreneurs across India turn their ideas into successful businesses. This initiative has fueled economic activity beyond metro cities, empowering individuals in small towns and villages to become job creators instead of job seekers.
How PMMY Works
The scheme operates under the Micro Units Development and Refinancing Agency (MUDRA), which was set up to focus on developing and refinancing micro-level businesses. It provides collateral-free institutional credit of up to ₹20 lakh through Member Lending Institutions (MLIs) such as Scheduled Commercial Banks, Regional Rural Banks, NBFCs, and microfinance institutions. This approach has made credit accessible to those who were traditionally left out of the banking system.
Supporting Grassroots Entrepreneurs
Mudra loans have benefited a wide range of small businesses, including tailoring shops, tea stalls, salons, mechanic workshops, and mobile repair units. The simplified application process and absence of collateral have encouraged millions to take the first step toward entrepreneurship. These micro and small enterprises form the backbone of India’s economy by creating jobs and spreading economic growth across regions.
Empowering Women Entrepreneurs
One of the most notable impacts of PMMY has been its role in empowering women entrepreneurs. Women account for 68% of all Mudra beneficiaries. Between FY16 and FY25, financial support for women-led businesses grew significantly, with per-woman disbursement increasing at a compound annual growth rate (CAGR) of 13%. States with higher disbursement shares for women have also seen greater job creation through women-led MSMEs.
Promoting Inclusive Growth
The scheme has also made significant progress in ensuring social inclusion. According to an SBI report, 50% of Mudra accounts are held by SC, ST, and OBC entrepreneurs, breaking traditional barriers to credit access. Additionally, 11% of Mudra loan holders belong to minority communities, showcasing the program’s success in bringing marginalized groups into the formal financial system.
Prime Minister’s Message
On this milestone occasion, Prime Minister Narendra Modi congratulated beneficiaries across the country and highlighted how PMMY has empowered countless individuals to pursue their entrepreneurial dreams. He emphasized that half of all Mudra beneficiaries belong to SC, ST, and OBC communities, while over 70% are women. The Prime Minister called the scheme a symbol of dignity, opportunity, and self-respect.
“Every Mudra loan carries with it dignity and opportunity,” he said. “It ensures financial inclusion while promoting social inclusion and economic freedom.”
PM Modi also interacted with several beneficiaries during the celebration and praised their inspiring journeys from being dreamers to being successful business owners.
Impact on India’s Economy
The PMMY has revolutionized India’s entrepreneurial landscape by providing financial support to non-corporate, non-farm micro enterprises. These businesses contribute significantly to job creation and help distribute economic growth across urban and rural areas.
PMMY has laid a strong foundation for grassroots entrepreneurship by removing collateral requirements and simplifying credit access. It reflects trust in people’s potential and demonstrates how targeted financial inclusion can lead to social empowerment.
As India celebrates a decade of PMMY’s success, it is clear that the scheme has transformed lives by turning dreams into reality for millions of aspiring entrepreneurs. With its focus on inclusive growth and gender empowerment, PMMY continues to play a vital role in strengthening India’s economy while fostering self-reliance among its citizens.
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