Mudra Yojana Turns 10: Empowering Entrepreneurs, Transforming Lives

New Delhi: Addressing select beneficiaries on the 10th anniversary of PMMY, Prime Minister Modi highlighted that over Rs 33 lakh crore in collateral-free loans have been sanctioned under the scheme. This financial support has empowered countless individuals to showcase their entrepreneurial skills, particularly among the youth, fostering a spirit of self-employment.

Focus on Inclusivity

Notably, half of the Mudra beneficiaries belong to the SC, ST, and OBC communities, while over 70% are women. The scheme has seen the highest participation from women, who not only apply for the most loans but also exhibit the fastest repayment rates, showcasing financial discipline and entrepreneurial acumen.

Dignity, Self-Respect, and Economic Freedom

PM Modi emphasized that every Mudra loan carries dignity, self-respect, and an opportunity for growth. Beyond financial inclusion, PMMY has been a catalyst for social inclusion and economic freedom, empowering marginalized communities and fostering gender equality in entrepreneurship.

Future Directions

The Prime Minister assured beneficiaries that the government would review and improve the scheme continuously. Future efforts will focus on creating a robust ecosystem where aspiring entrepreneurs have easy access to credit, enabling them to grow their ventures confidently.

Loan Categories and Coverage

Under PMMY, collateral-free loans up to Rs 20 lakh are provided by member lending institutions, including scheduled commercial banks, regional rural banks, small finance banks, NBFCs, and microfinance institutions. The loans support income-generating activities in manufacturing, trading, services, and allied agricultural sectors.

Loan Categories

Shishu: Up to Rs 50,000

Kishore: Between Rs 50,000 and Rs 5 lakh

Tarun: Up to Rs 20 lakh

Prime Minister Narendra Modi launched the Pradhan Mantri Mudra Yojana (PMMY) on April 8, 2015, with the vision of funding the unfunded. The scheme aims to provide collateral-free institutional credit to small businesses, promoting entrepreneurship and financial inclusion across India. Its motto is to transform job seekers into job creators, fostering economic growth and self-reliance.