Paromita Das
New Delhi: On April 8, 2025, Bharat marked a decade since the launch of the Pradhan Mantri Mudra Yojana (PMMY)—an economic intervention that quietly reshaped the narrative of small-scale entrepreneurship in the country. Introduced by Prime Minister Narendra Modi in 2015, PMMY didn’t just aim to inject credit into the informal sector; it dared to place belief in people who lacked traditional financial credibility but not ambition.
Pradhan Mantri Mudra Yojana (PMMY) completes 10 glorious Years of empowering Small and Micro Entrepreneurs
Launched with Prime Minister's vision of "Funding the Unfunded", PMMY extends collateral-free loans to small enterprises that face significant challenges in accessing… pic.twitter.com/oIGfgq58ei
— PIB India (@PIB_India) April 8, 2025
Today, ten years on, the scheme’s outcomes speak for themselves: more than ₹33 lakh crore has been disbursed through over 52 crore loan accounts. But beyond numbers, the Mudra Yojana tells a story of empowerment—of women becoming entrepreneurs, of marginalized communities becoming financially mainstream, and of rural innovation thriving.
A Decade of Building from the Bottom-Up
The essence of PMMY lies in its accessibility. Collateral-free loans ranging from ₹10,000 to ₹10 lakh are disbursed under three categories—Shishu, Kishor, and Tarun—targeting micro-enterprises at different growth stages. The sheer volume of beneficiaries highlights the scale: over 52 crore loans granted in ten years.
A recent update from the Ministry of Finance confirms that over ₹33.5 lakh crore has now been disbursed under the scheme. According to a new report, the scheme has grown at a compound annual growth rate (CAGR) of 27%, becoming one of the largest financial inclusion programs in the world.
Women Leading the Charge
If there’s a defining feature of PMMY’s success, it is its profound impact on women. A staggering 68% of all Mudra loans have gone to women entrepreneurs—many of whom had never interacted with a bank manager before. The average loan size for women has increased from ₹38,000 in 2016 to ₹62,679 in FY25, according to government data.
Kamlesh, a tailor from Delhi, took a modest Mudra loan five years ago. Today, she employs three other women and has expanded her business to an online marketplace. Stories like hers are echoed in every state, forming a mosaic of economic empowerment.
Inclusion Beyond Gender
The Mudra Yojana has also excelled in reaching underserved castes and communities. An SBI report revealed that about 50% of all PMMY loan accounts belong to entrepreneurs from SC, ST, and OBC backgrounds. Additionally, 11% of loans were granted to members of religious minorities, ensuring broader participation in the economic mainstream.
The deliberate outreach to these groups has ensured that the Mudra Yojana is not just a credit program—it’s an equalizer in a historically unequal system.
MSME Backbone Gets a Boost
The Micro, Small, and Medium Enterprises (MSME) sector has flourished under the Mudra Yojana. In FY14, MSME lending stood at ₹8.51 lakh crore. In FY25, it has crossed ₹27.25 lakh crore, and the sector is projected to exceed ₹30 lakh crore in credit flow by the end of this year.
Notably, there’s been a shift in loan trends: while “Shishu” loans (up to ₹50,000) once made up the bulk of disbursements, “Kishor” (₹50,000 to ₹5 lakh) loans now account for 45% of all PMMY loans. This reflects business expansion and a growing appetite for risk and scale among small entrepreneurs.
States Driving Growth
Geographically, the scheme’s reach has been remarkable. Tamil Nadu tops the charts with over ₹3.23 lakh crore in total disbursements, followed by Uttar Pradesh and Karnataka. Even the union territory of Jammu & Kashmir has seen strong uptake, with over ₹45,000 crore disbursed, signaling a pan-Bharat impact.
This regional balance shows that PMMY is not metro-centric. It thrives equally in villages, small towns, and backward districts—fueling Bharat’s real economic engine.
A Model of Responsible Lending
One of the most surprising outcomes of the scheme is its low default rate. The NPA (Non-Performing Asset) ratio under PMMY remains around 3.6%, despite its massive scale and lack of collateral. This challenges the common belief that poor borrowers are high-risk, and underscores the trust and responsibility shown by beneficiaries.
Global Recognition
The international community has taken note. The International Monetary Fund (IMF) and World Bank have both praised the Mudra Yojana for its contribution to financial inclusion, particularly when combined with schemes like Jan Dhan Yojana and Digital India.
The IMF’s latest review noted that PMMY has created one of the world’s largest self-employment ecosystems, highlighting its role in advancing the Sustainable Development Goals (SDGs) on poverty alleviation and gender equality.
A Human-Centric Economic Model
Perhaps the greatest strength of PMMY is its philosophy. It does not chase GDP figures from the top down. Instead, it invests in the smallest economic units—individuals. The scheme’s success lies not just in disbursing loans but in transforming mindsets. It allows a vegetable vendor to become a wholesaler, a street food seller to become a restaurateur, and a home-based artisan to become a manufacturer.
A Revolution Still in Motion
As the Mudra Yojana enters its second decade, its mission is far from complete. With Bharat aspiring to become a $5 trillion economy, schemes like PMMY are critical for ensuring inclusive growth. The next challenge will be scaling support systems—digital platforms, mentoring, market access, and skilling—to help these micro-entrepreneurs become globally competitive.
PMMY is not just a scheme—it is a silent revolution that continues to reshape Bharat’s economic destiny. Its story is not written in boardrooms or stock exchanges, but in every small shop, sewing machine, and start-up kitchen across the country. And that story is still unfolding.
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