PM Mudra Yojana Achieves Significant Milestone with 52 Crore Loans Totaling Rs 32.61 Lakh Crore in a Decade
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Synopsis
As the PM Mudra Yojana celebrates its 10th anniversary, it has approved over 52 crore loans totaling Rs 32.61 lakh crore, significantly boosting entrepreneurship and employment in India, particularly among women and in rural areas.
Key Takeaways
- Over 52 crore loans sanctioned.
- Total loan amount of Rs 32.61 lakh crore.
- Approximately 70 percent of loans availed by women.
- Average annual employment generation of 5.14 crore person-years.
- MSME credit projected to exceed Rs 30 lakh crore in FY25.
New Delhi, April 7 (NationPress) More than 52 crore loans amounting to Rs 32.61 lakh crore have been approved under the PM Mudra Yojana as the initiative marks its 10th anniversary on April 8, 2015, according to official statistics.
The program has played a vital role in fostering business development in smaller towns and rural areas, empowering first-time entrepreneurs to take control of their futures, stated a senior official.
As per the "Outcomes of ModiNomics 2014-24" report by SKOCH, an average of 5.14 crore person-years of employment have been generated annually since 2014, with the PMMY contributing 2.52 crore stable and sustainable jobs each year on average since 2014. A notable example is Jammu and Kashmir, which has seen substantial benefits from the MUDRA scheme, as evidenced by the sanctioning of 20,72,922 loans.
The scheme has also advanced women's empowerment, with nearly 70 percent of Mudra loans being accessed by women entrepreneurs, thereby enhancing their financial autonomy and contributing to gender equality. Over the past nine years (FY25 compared to FY16), the disbursement amount per woman under PMMY has seen a compound annual growth rate (CAGR) of 13 percent to reach Rs 62,679, while the per woman incremental deposits have increased by a CAGR of 14 percent to Rs 95,269, as per data from the Finance Ministry.
The IMF has praised the PM Mudra Yojana, with a report from the UN arm indicating that the initiative, which provides collateral-free loans with a focus on women's entrepreneurship, has significantly increased the number of women-owned MSMEs, which now exceed 2.8 million. In 2024, the IMF noted that a supportive policy framework for entrepreneurship through various programs like the Pradhan Mantri Mudra Yojana is enhancing self-employment and formalization through credit.
A report from SBI reveals that in the past decade, Mudra has facilitated the opening of over 52 crore loan accounts, indicating a remarkable increase in entrepreneurial activities. Kishor loans (ranging from Rs 50,000 to Rs 5 lakh), designed to support expanding businesses, have grown from 5.9 percent in FY16 to 44.7 percent in FY25, showcasing a natural shift from micro to small enterprises. The Tarun category (Rs 5 lakh to Rs 10 lakh) is also gaining popularity, proving that Mudra is not only about initiating businesses but also scaling them up.
The SBI report underscores a notable increase in credit flow to MSMEs, driven by the impact of Mudra. MSME lending surged to Rs 27.25 lakh crore in FY24, up from Rs 8.51 lakh crore in FY14, and is expected to exceed Rs 30 lakh crore in FY25.
In FY24, MSME credit constituted nearly 20 percent of overall bank credit, rising from 15.8 percent in FY14, highlighting its expanding significance in India's economy. This credit growth has enabled businesses in smaller towns and rural areas to obtain financial support previously out of reach, reinforcing India's self-reliant economy and fostering job creation at the grassroots level, further states the report.
