New Delhi, April 8 (NationPress) The Pradhan Mantri MUDRA Yojana (PMMY), a key initiative from the Modi administration, has celebrated its 11th anniversary, focusing on providing financial support to the ‘unfunded’ micro enterprises and small businesses, thereby paving the way for their development.

Since its launch on this day in 2015, this scheme has played a vital role in enhancing the operational landscape for small businesses and first-time entrepreneurs, in particular.

As per government statistics, approximately 58 crore loans totaling over Rs 40 lakh crore have been approved under the initiative to date.

A significant portion of these Mudra loans, around two-thirds, has been allocated to women entrepreneurs, while nearly one-fifth has been granted to first-time entrepreneurs, making them the primary beneficiaries.

By facilitating collateral-free credit, this program has been subtly transforming the economic framework of India, as evidenced by the increasing participation of first-time entrepreneurs from women and marginalized communities.

Insights from MyGovIndia, a citizen engagement platform of the Government of India, reveal that this initiative has catalyzed the emergence of first-time entrepreneurs, fostering a supportive environment for small businesses to enhance livelihoods and contribute positively to the nation’s economic landscape.

21 percent loans awarded to new entrepreneurs

Approximately 21 percent of the overall Mudra loans, amounting to Rs 12,000 crore, have been allocated to new entrepreneurs. These loans, which require no collateral, encourage young entrepreneurs to step forward and access funding without stringent conditions, leading to a notable increase in first-time entrepreneurs.

NPA declines to 2.3 percent

Financial prudence, typically associated with large corporations and financial institutions, has trickled down to grassroots levels as well, resulting in a non-performing asset (NPA) rate dropping to an unprecedented 2.3 percent. This has enabled banks to be more open to lending while minimizing their risk exposure.

Rise of Lakhpati Didis

Collateral-free loans amounting to Rs 20 lakh crore have been distributed to Self-Help Groups (SHGs), thereby unlocking the potential for women to become Lakhpati Didis.

This initiative has empowered women to act as “powerful catalysts” for economic transformation, with their growing trust in the Mudra Yojana underscoring this belief. As per estimates, two out of every three beneficiaries of Mudra loans are women.

Last-mile delivery of loans

The scheme has expanded its reach into Tier 2 and Tier 3 cities, as well as rural areas. Over Rs 3.5 lakh crore has been disbursed to 6.15 crore beneficiaries, with 49 percent belonging to SC/ST and OBC categories, according to data from MyGovIndia.

Kishore loans

This initiative has successfully created a network of micro-entrepreneurs. Data indicates that around 74 percent of the loans have been directed towards micro businesses, alongside a notable increase in Kishore loans, which now represent 40-45 percent of the total loans disbursed.

Importantly, the Mudra Yojana operates under four distinct categories — Shishu (loans up to Rs 50,000), Kishor (Rs 50,000 to Rs 5 lakh), Tarun (Rs 5 lakh to Rs 10 lakh), and Tarun Plus (Rs 10 lakh to Rs 20 lakh) — depending on the growth stage and financing needs of borrowers.