New Delhi: Finance Minister Nirmala Sitharaman said the Pradhan Mantri MUDRA Yojana was designed around the government’s trust in the people of India and their entrepreneurial potential.
Speaking during an interaction with PM MUDRA Yojana beneficiaries in New Delhi, Sitharaman said Prime Minister Narendra Modi placed his faith in small entrepreneurs by enabling them to obtain business loans without providing collateral.
She said the scheme has given millions of people an opportunity to start businesses, become financially independent and contribute to India’s economic growth.
Small enterprises are now securing a more important position in the economy, with a growing number of individuals benefiting from formal credit, the finance minister added.
From Jan Dhan to MUDRA loans
Sitharaman said the government expanded access to banking services in 2014 through the Pradhan Mantri Jan Dhan Yojana, which allowed people to open bank accounts without maintaining a minimum balance.
The following year, the government introduced the PM MUDRA Yojana to provide collateral-free loans to micro and small entrepreneurs who previously struggled to access institutional finance.
The flagship scheme was launched on April 8, 2015, with the objective of “funding the unfunded”.
Over 57 crore loans sanctioned
According to Sitharaman, beneficiaries who repay their MUDRA loans on time can become eligible for larger loan amounts, improve their credit history and build greater credibility with banks.
Many borrowers have expanded their businesses and gained access to regular banking facilities after developing a reliable repayment record.
Since its launch, more than 57.79 crore loans have been sanctioned under the PM MUDRA Yojana. The cumulative value of loan disbursements has reached ₹40.07 lakh crore.
About one-fifth of the loans were provided to first-time entrepreneurs. This includes around 12.15 crore loans worth ₹12 lakh crore, highlighting the scheme’s role in encouraging new businesses and widening financial inclusion across India.
