New Delhi, April 8 (NationPress) Prime Minister Narendra Modi emphasized on Wednesday that the Pradhan Mantri Mudra Yojana (PMMY) embodies an economic philosophy where opportunities are within reach, initiatives are promoted, and every aspiration receives the necessary support to flourish.

In a message on the social media platform ‘X’, PM Modi stated, “The PM Mudra Yojana showcases an economic philosophy where opportunities are accessible, initiatives are promoted, and every aspiration is supported to thrive.”

He also shared a post from MyGovIndia, which highlighted the scheme’s accomplishments over the years.

“For 11 years, the Pradhan Mantri Mudra Yojana has been an ‘Anjali Mudra’, a devoted tribute to our nation’s entrepreneurial spirit. By connecting ambition with credit, it has empowered over 52 crore job seekers to become business owners,” stated the post.

MyGovIndia indicated that this scheme has transformed access to credit by providing millions with both the confidence to dream and the means to achieve those dreams. By eliminating barriers and trusting the capabilities of its citizens, it has enhanced the entrepreneurial spirit throughout the country.

In discussing the evolution of business financing, the post highlighted that the scheme has redefined credit access by removing collateral demands, thereby enabling small businesses and assisting first-time entrepreneurs across India.

Previously, obtaining loans often required guarantees that dissuaded many aspiring entrepreneurs. Now, under PMMY, collateral-free loans of up to Rs 20 lakh are available, allowing individuals to embark on their business journeys with assurance.

This initiative has also tackled concerns regarding funding for first-time founders.

“The perception that new entrepreneurs are too risky has changed dramatically. Over 12 crore entrepreneurs have received funding, with more than Rs 12 lakh crore allocated to support new business initiatives,” the post mentioned.

PMMY provides structured loan categories—Shishu, Kishor, Tarun, and Tarun Plus—designed to assist businesses at various growth stages, effectively replacing the old norm of limited financial support for new enterprises.

The scheme has greatly expanded credit access, with over 56 crore loans approved and more than Rs 40 lakh crore disbursed to back enterprises across different sectors.

Notably, women entrepreneurs have become significant beneficiaries of this initiative.

“Nearly 65 percent of Mudra loans have been granted to women, including support for Self-Help Groups through collateral-free loans,” the post added.

The scheme has also reached communities that have historically been excluded from formal credit systems. Nearly 49 percent of loans have been allocated to SC, ST, and OBC groups, while over Rs 3.50 lakh crore has been disbursed to more than 6 crore minority borrowers.

Trends in repeat borrowing reveal a growing trust in the scheme, as entrepreneurs increasingly return for larger loans, with the share of Kishor category loans rising from 5-6 percent in 2016 to 40-45 percent in 2025.

A new generation of first-time entrepreneurs is emerging across India under PMMY. From small retail outlets to local service providers, individuals are transforming ideas into sustainable livelihoods, contributing to grassroots economic advancement.

The initiative has also recognized skill as a form of capital by supporting micro-businesses like vendors, shopkeepers, and home-based enterprises, allowing them to monetize their skills.

Furthermore, PMMY has broadened opportunities beyond urban areas, reaching Tier 2, Tier 3, and rural regions. By extending credit access to underserved communities, it is promoting inclusion and driving decentralization in development.

MyGovIndia further noted that Mudra is fortifying India’s formal economy by integrating informal businesses into the credit system. The extensive expansion of MSME credit fuels job creation, production, and decentralized growth.