Reference:

• PMMY completed 10 years on 8 April 2025.

Prime Minister's Mudra Scheme (PMMY) :

• Launch Date: 8 April 2015
• Main Objective: To provide institutional credit to micro and small enterprises to help them establish and grow their businesses.

Key Features:

• Type: Central Sector Scheme
• Financing Provision: Loans are provided through Member Lending Institutions (MLIs) such as Scheduled Commercial Banks, RRBs, NBFCs, and MFIs.
• Refinancing: Managed by MUDRA Ltd. (Micro Units Development and Refinance Agency), which provides refinancing to MLIs but does not lend directly to borrowers.
• Credit Guarantee: Loans are guaranteed through the Credit Guarantee Fund for Micro Units (CGFMU), established in 2015.

Loan Categories:

The scheme provides loans under four categories:

• Shishu: Up to ₹50,000
• Kishore: ₹50,000 to ₹5 lakh
• Tarun: ₹5 lakh to ₹10 lakh
• Tarun Plus: ₹10 lakh to ₹20 lakh
• Total Loans Sanctioned: Over ₹32.61 lakh crore covering more than 52 crore loan accounts
• Banking Platforms: SCBs, RRBs, SFBs, NBFCs, and MFIs

Major Achievements:

Growth in Credit Flow to MSME :

• In FY 2014, total credit to MSMEs stood at ₹8.51 lakh crore
• In FY 2024, it increased to ₹27.25 lakh crore
• FY 2025 estimate: Expected to cross ₹30 lakh crore

Share of MSME Credit in Total Bank Credit:

• FY 2014: 15.8%
• FY 2024: Approx. 20%

→ Reflects MSMEs’ growing contribution to the Indian economy.

Regional Impact:

• Enabled businesses in small towns and rural areas to access formal financial assistance.
• Helped businesses previously excluded from institutional credit systems.

Financial Inclusion: Empowering Women

Women’s Participation:

• 68% of total PMMY beneficiaries are women

→ Shows the scheme’s significant role in promoting women-led enterprises.

Growth in Per-Woman Loan and Deposit:

Between FY 2016 and FY 2025:

• Loan distribution per woman grew at 13% annually, reaching ₹62,679
• Incremental deposit per woman grew at 14% annually, reaching ₹95,269

State-Level Impact:

• States with high women-focused lending saw greater job creation through women-led MSMEs

→ Boosting women’s economic independence.

Inclusive Financial Access:

• 68% of PMMY beneficiaries are women
• Between FY 2016 and FY 2025, per-woman loan disbursement grew at 13% CAGR; deposits grew at 14% CAGR
• SBI report: 50% of PMMY accounts are held by SC, ST, and OBC entrepreneurs
• 11% of loan holders belong to minority communities

→ Demonstrates inclusive outreach to marginalized communities

Progressive Lending – From Shishu to Tarun:

Total Loan Accounts (2015–2025): Over 52 crore accounts

Kishore Loans (₹50,000 – ₹5 lakh):

• FY 2016: 5.9% share
• FY 2025: 44.7% share

→ Indicates shift from micro to small-scale businesses

Tarun Loans (₹5 lakh – ₹10 lakh):

Steady growth showing that the scheme supports not just starting a business but also scaling it up

Average Loan Size:

• FY 2016: ₹38,000
• FY 2023: ₹72,000
• FY 2025: ₹1.02 lakh

→ Reflects greater economic activity and confidence in entrepreneurship

Top States/UTs in Loan Disbursement (as of 28 February 2025):

1. Tamil Nadu: ₹3,23,647.76 crore
2. Uttar Pradesh: ₹3,14,360.86 crore
3. Karnataka: ₹3,02,146.41 crore
4. West Bengal: ₹2,82,322.94 crore
5. Bihar: ₹2,81,943.31 crore
6. Maharashtra: ₹2,74,402.02 crore

International Recognition:

Acknowledgment by the IMF (International Monetary Fund):

2017:

• Recognized the scheme’s role in improving access to finance for women-led businesses
• Highlighted how PMMY complements PMJDY by providing collateral-free loans to financially excluded households

2019:

• Appreciated PMMY’s support to micro-units via refinancing under MUDRA
• Acknowledged its importance in promoting small businesses in manufacturing, trade, and services

2023:

• Praised the scheme’s focus on collateral-free credit and women entrepreneurship
• Contributed to growth of over 2.8 million women-owned MSMEs

2024:

• Reaffirmed that programs like PMMY are essential tools for promoting self-employment, formalization, and financial inclusion in India’s pro-entrepreneurship policy environment