The Pradhan Mantri Mudra Yojana (PMMY) has sanctioned loans worth ₹2,18,423 crore to 2,55,91,381 beneficiaries in Rajasthan since its launch, according to official data presented in the Lok Sabha. The scheme, which provides collateral-free credit to micro and small enterprises, has emerged as one of the most far-reaching financial inclusion instruments in the state.

Scale of Disbursements in Rajasthan

Of the total beneficiaries in Rajasthan, more than 1.54 crore are women, who have collectively received loans worth over ₹67,982 crore. Women account for nearly 60 per cent of all PMMY beneficiaries in the state, underscoring the scheme's role in fostering women-led entrepreneurship at the grassroots level.

Momentum has continued into the current financial year. During FY 2025–26, loans worth ₹31,460 crore have already been sanctioned to more than 23 lakh beneficiaries in Rajasthan alone.

What the Government Said

Replying to an unstarred question in the Lok Sabha, Union Minister of State for Finance Pankaj Chaudhary said the PMMY has played a significant role in providing collateral-free credit to India's non-corporate, non-farm micro and small enterprises. As of June 2026, loans worth ₹41.71 lakh crore had been sanctioned to more than 59.14 crore beneficiaries across the country under the scheme.

How the Scheme Works

Launched in 2015, the PMMY provides collateral-free loans of up to ₹20 lakh to eligible non-corporate small business enterprises. Loans are structured under four categories — Shishu, Kishore, Tarun, and Tarun Plus — designed to cater to businesses at different stages of growth and varying capital requirements.

The scheme supports a wide range of economic activities, including manufacturing units, retail shops, fruit and vegetable vendors, truck and taxi operators, food service businesses, artisans, food processors, and street vendors.

Impact on Marginalised Communities

A substantial proportion of Mudra borrowers belong to Scheduled Castes (SC), Scheduled Tribes (ST), and Other Backward Classes (OBC). Traditionally, many of these entrepreneurs depended on informal credit sources such as moneylenders, relatives, or friends. By channelling institutional finance to these groups, the scheme has reduced dependence on informal lending while strengthening financial inclusion and self-reliance.

Notably, the PMMY is now regarded as one of the world's largest micro-credit ecosystems by beneficiary count, a distinction that reflects the scale of India's push to formalise small-enterprise finance over the past decade.

What Comes Next

With FY 2025–26 disbursements already crossing ₹31,460 crore in Rajasthan midway through the year, the state is on track to record one of its stronger annual uptake figures. Analysts and industry observers will watch whether the scheme's expansion to Tarun Plus — the highest loan category — draws more established micro-enterprises into the formal credit fold.