A Decade of MUDRA: Empowering Grassroots Entrepreneurship

Synopsis

India celebrates ten years of the Pradhan Mantri MUDRA Yojana (PMMY), an initiative by Prime Minister Narendra Modi aimed at supporting unfunded micro enterprises and small businesses, fostering a new era of grassroots entrepreneurship across the nation.

Key Takeaways

Ten years of PMMY funding micro enterprises.
Over 52 crore loans sanctioned since 2015.
68% of beneficiaries are women.
50% of accounts belong to SC, ST, and OBC entrepreneurs.
11% of Mudra loan holders are from minority communities.

New Delhi, April 8 (NationPress) India celebrates a decade of the Pradhan Mantri MUDRA Yojana (PMMY), the flagship initiative by Prime Minister Narendra Modi designed to finance micro enterprises and small businesses that lack funding.

Established under the Micro Units Development and Refinancing Agency (MUDRA), PMMY was launched by the government to foster development and refinancing activities for micro units.

Since its inception in April 2015, the PMMY has approved over 52 crore loans totaling Rs 32.61 lakh crore, igniting an entrepreneurial movement across the nation. Business opportunities are now branching out from urban centers to smaller towns and rural areas, where budding entrepreneurs are taking control of their futures. The change in perspective is clear: individuals are transitioning from job seekers to job creators.

This initiative guarantees collateral-free institutional credit up to Rs 20 lakh through Member Lending Institutions (MLIs), including Scheduled Commercial Banks (SCBs), Regional Rural Banks (RRBs), Non-Banking Financial Companies (NBFCs), and Micro Finance Institutions (MFIs).

A government press release states that Mudra has initiated a new chapter of grassroots entrepreneurship by eliminating the collateral requirement and streamlining access. From tailoring units and tea stalls to salons, repair shops, and mobile service businesses, millions of micro-entrepreneurs have emerged with newfound confidence, supported by a system that believes in their potential.

PMMY has bolstered these ventures by providing institutional credit to non-corporate, non-farm micro and small enterprises, which are vital to India’s economic framework.

At its heart, the MUDRA Yojana embodies a narrative of trust. Trust in individuals' ambitions and their capability to create. Trust in the notion that even the smallest dreams warrant a platform for growth, officials noted.

Women represent 68 percent of all Mudra beneficiaries, highlighting the scheme’s crucial role in promoting women-led enterprises nationwide.

From FY16 to FY25, the average PMMY disbursement per woman has expanded at a CAGR of 13 percent, reaching Rs 62,679, while per-woman incremental deposits have increased at a CAGR of 14 percent to Rs 95,269. Regions with higher disbursements to women have witnessed significantly greater job creation through women-led MSMEs, underscoring the success of targeted financial inclusion in empowering women economically and increasing their participation in the workforce.

The initiative has made remarkable strides in dismantling conventional credit barriers. According to an SBI report, 50 percent of Mudra accounts are owned by SC, ST, and OBC entrepreneurs, ensuring broader access to formal financing.

Moreover, 11 percent of Mudra loan recipients belong to minority communities, reflecting the scheme’s role in fostering inclusive growth by enabling marginalized groups to engage actively in the formal economy.