On April 8, 2025, India marks 10 years since the launch of the Pradhan Mantri Mudra Yojana (PMMY), a flagship government scheme that provides collateral-free institutional finance to non-corporate, non-farm micro and small enterprises.
Since its inception in 2015, PMMY has sanctioned over 52 crore loans worth ₹32.61 lakh crore. The average loan size has increased from ₹38,000 in FY16 to ₹1.02 lakh in FY25, reflecting growing credit demand among small businesses.
📈 Key Highlights:
MSME Credit Growth: Lending to MSMEs rose from ₹8.51 lakh crore in FY14 to ₹27.25 lakh crore in FY24, with projections to cross ₹30 lakh crore in FY25.
Women Empowerment: Women account for 68% of Mudra loan recipients. The average loan to women borrowers grew at 13% CAGR, while their savings rose at 14% CAGR.
Social Inclusion: 50% of accounts are held by SC, ST, and OBC entrepreneurs, and 11% by minority communities, improving financial inclusion.
Loan Categories:
- Shishu: Up to ₹50,000
- Kishor: ₹50,000 – ₹5 lakh (grew from 5.9% to 44.7% share)
- Tarun: ₹5 lakh – ₹10 lakh
- Tarun Plus: ₹10 lakh – ₹20 lakh (new addition)
Top States by Disbursal:
- Tamil Nadu – ₹3.23 lakh crore
- Uttar Pradesh – ₹3.14 lakh crore
- Karnataka – ₹3.02 lakh crore
- West Bengal – ₹2.82 lakh crore
- Bihar – ₹2.81 lakh crore
UT Leader: Jammu & Kashmir with ₹45,816 crore across 21 lakh loans
Sector Impact: The scheme supports units in manufacturing, trading, processing, and services, employing nearly 10 crore people, making it India’s second-largest source of employment after agriculture.
Global Recognition: The IMF has praised PMMY for expanding financial access, promoting self-employment, and supporting women-led businesses.
Implemented By: Scheduled Commercial Banks, Regional Rural Banks, NBFCs, and Microfinance Institutions under MUDRA (Micro Units Development and Refinance Agency).
