New Delhi, April 8 (NationPress) The Pradhan Mantri MUDRA Yojana (PMMY) has successfully disbursed more than Rs 40 lakh crore through 57.79 crore loans, celebrating 11 years of its operation, the government announced on Wednesday.

The Ministry of Finance revealed that this initiative, inaugurated by Prime Minister Narendra Modi in 2015, is designed to 'fund the unfunded,' offering collateral-free loans of up to Rs 20 lakh to micro and small non-corporate, non-farming enterprises.

In a statement underscoring the scheme's achievements, Finance Minister Nirmala Sitharaman emphasized that PMMY has significantly transformed the credit environment for MSMEs and individual entrepreneurs who were previously left out of the traditional banking sector.

"Over the past decade, India has experienced a quiet revolution, with millions of ordinary citizens embracing entrepreneurship with renewed confidence," she remarked.

She noted that nearly two-thirds of the loans have been allocated to women entrepreneurs, while approximately one-fifth have been given to first-time business owners.

Official statistics indicate that around 12.15 crore loans amounting to about Rs 12 lakh crore have been awarded to new entrepreneurs under this program.

Minister of State for Finance Pankaj Chaudhary remarked that PMMY has become a pivotal effort in promoting micro-entrepreneurship and enhancing financial inclusion. He pointed out that the initiative has generated self-employment opportunities, particularly for marginalized communities, including Scheduled Castes, Scheduled Tribes, and Other Backward Classes, who represent around 51% of the beneficiaries, alongside women, who constitute 67%.

The scheme is categorized into four segments: Shishu (loans up to Rs 50,000), Kishor (from Rs 50,000 to Rs 5 lakh), Tarun (from Rs 5 lakh to Rs 10 lakh), and Tarun Plus (from Rs 10 lakh to Rs 20 lakh), based on the borrowers' growth stage and funding requirements.

Loans granted under PMMY encompass both term financing and working capital needs across manufacturing, trading, and service sectors, including related agricultural activities.

This initiative is part of a larger financial inclusion strategy built upon three core principles: banking the unbanked, securing the unsecured, and funding the unfunded, all aimed at integrating underserved populations into the formal financial system.

The government affirmed that PMMY will persist in its support for entrepreneurs, contributing to the vision of a 'Viksit Bharat' by 2047.