Marking a decade of the scheme, Prime Minister Narendra Modi Tuesday said that more than Rs 33 lakh crore of collateral-free loans have been sanctioned under the Pradhan Mantri Mudra Yojana (PMMY) aimed at empowering individuals to showcase their entrepreneurial skills.
He interacted with select beneficiaries at his residence in Delhi and said it has helped promote the spirit of entrepreneurship among the youth of the country, and instilled confidence in them to become job providers instead of job seekers.
The scheme was launched by the PM on April 8, 2015, to provide collateral-free institutional credit through Member Lending Institutions (MLIs) to those who were unfunded. Pradhan Mantri MUDRA Yojana (PMMY) is a scheme launched by Prime Minster Narendra Modi in 2015 to provide loans up to Rs 10 lakh to non-corporate, non-farm small/micro enterprises. These loans are classified as MUDRA loans under PMMY.
Over a post on X (formerly Twitter), the prime minister wrote: “Mudra Yojana has given opportunities to countless people to showcase their entrepreneurial skills. Interacted with some of the beneficiaries of the scheme. Their journey is inspiring.”
“Every Mudra loan carries with it dignity, self-respect and opportunity. In addition to financial inclusion, this scheme has also ensured social inclusion and economic freedom,” he added
“It is particularly heartening that half of the Mudra beneficiaries belong to SC, ST and OBC communities, and over 70 per cent of the beneficiaries are women,” he said. Within the scheme, he added, the highest number of women have come forward. They have applied for the most loans, received the most loans, and are also the fastest to repay them.
The prime minister also assured the beneficiaries that the government would review the scheme and take steps to improve it.
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He also mentioned that the government will continue focusing on ensuring a robust ecosystem where every aspiring entrepreneur has access to credit thus giving him or her the confidence and a chance to grow, according to the PTI report.
According to data available on the official website of MUDRA, the government has disbursed an amount of around 13 lakh crore rupees for 2015-2016 when the scheme was introduced, which has now jumped to 49 lakh crore rupees for 2024-25.
Under the PMMY, collateral-free loans of up to Rs 20 lakh are extended by member lending institutions (MLIs) viz scheduled commercial banks, regional rural banks (RRBs), small finance banks (SFBs), non-banking financial companies (NBFCs), and microfinance institutions (MFIs), the website stated.
Four products namely ‘Shishu’, ‘Kishore’, ‘Tarun’ and ‘TarunPlus’ have been created to signify the stages of development, funding needs of the beneficiary, and also provide a reference point for the next phase of growth. Banks disburse up to Rs 50,000 under ‘Shishu’ category, between Rs 50,000 and Rs 5 lakh under ‘Kishore’, Rs 5 lakh and 10 lakh under Tarun, and Rs 10 lakh and Rs 20 lakh under ‘TarunPlus’.
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The loans are given for income-generating micro/small business entities engaged in trading, manufacturing, services sectors and activities allied to agriculture, according to the website.
