New Delhi, April 8 – The Pradhan Mantri MUDRA Yojana (PMMY), the flagship program of the Modi government, has completed 11 years of operation, aimed at funding "unfunded" micro enterprises, small businesses, and setting the stage for their growth.
Since its inception on this day in 2015, the program has been instrumental in empowering the business dynamics of small businesses and first-time entrepreneurs, in particular.
According to government estimates, approximately 58 crore loans worth more than Rs 40 lakh crore have been sanctioned under the program to date.
Two-thirds of the MUDRA loans have been given to women entrepreneurs, while about one-fifth were extended to first-time entrepreneurs, making them the biggest beneficiaries.
By enabling collateral-free credit, the scheme has quietly reshaped the foundation of India's economy, and this is reflected in the way first-time entrepreneurs, especially women and underserved communities, are stepping forward.
According to information gathered by MyGovIndia, a citizen engagement platform of the Government of India, the scheme has spurred the growth of first-time entrepreneurs while creating a favorable environment for small businesses to contribute to livelihoods and the country's economic outlook.
21 per cent of loans given to new entrepreneurs
About 21 per cent of the total MUDRA loans worth Rs 12,000 crore have been given to new entrepreneurs. This loan also comes without collateral, thus encouraging more young entrepreneurs to come forward and avail loans without conditions. This has apparently led to the proliferation of first-time entrepreneurs.
NPA dips to 2.3 per cent
Financial discipline, which was previously limited to big corporate houses and financial institutions, has now been emulated at the grassroots level, and the data shows NPA reducing to an all-time low of 2.3 per cent. This has facilitated banks to open doors to more loan-seekers while limiting their risk exposure.
Growth of Lakhpati Didis
Collateral-free loans up to Rs 20 lakh crore have been given to Self-Help Groups (SHGs), facilitating the growth potential of Lakhpati Didis.
This has ensured that women emerge as "powerful drivers" of economic change, and their growing confidence in MUDRA Yojana is a testament to this belief. According to estimates, two out of every three MUDRA loan beneficiaries are women.
Last-mile delivery of loans
The scheme has seen growth in Tier 2 and Tier 3 cities, as well as rural regions. Over Rs 3.5 lakh crore have been disbursed to 6.15 crore beneficiaries, out of which 49 per cent belong to SC/ST and OBC groups, as per data shared by MyGovIndia.
Kishore loans
The scheme has helped generate a pool of micro-entrepreneurs. As evident from the numbers, about 74 per cent of loans have been granted to micro businesses, and there has also been a sharp rise in Kishore loans, accounting for a share of 40-45 per cent in the total loans disbursed.
Notably, the MUDRA Yojana operates under four 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 stage of growth and funding needs of borrowers.
