PMMY Achieves Milestone with Over ₹40 Lakh Crore Disbursed in Loans
Significant Milestone for PMMY
Photo: @InvGurInd/X
New Delhi, April 8: The Pradhan Mantri MUDRA Yojana (PMMY) has successfully disbursed more than ₹40 lakh crore through approximately 57.79 crore loans, celebrating 11 years since its inception, as reported by the government on Wednesday.
The Finance Ministry highlighted that this initiative, introduced by Prime Minister Narendra Modi in 2015, aims to provide financial support to those previously without access. It offers collateral-free loans of up to ₹20 lakh to micro and small non-corporate, non-farm businesses.
Finance Minister Nirmala Sitharaman emphasized the scheme's transformative impact on the credit landscape for MSMEs and individual entrepreneurs who were once marginalized by the formal 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 66% of the loans have been granted to women entrepreneurs, while around 20% have gone to first-time business owners.
Official statistics reveal that approximately 12.15 crore loans, totaling around ₹12 lakh crore, have been allocated to new entrepreneurs through this scheme.
Pankaj Chaudhary, Minister of State for Finance, stated that PMMY has become a crucial program for fostering micro-entrepreneurship and enhancing financial inclusion. He pointed out that the initiative has generated self-employment opportunities, especially for marginalized groups, including Scheduled Castes, Scheduled Tribes, and Other Backward Classes, who represent about 51% of the beneficiaries, alongside women, who make up 67%.
The scheme categorizes loans into four segments: Shishu (up to ₹50,000), Kishor (₹50,000 to ₹5 lakh), Tarun (₹5 lakh to ₹10 lakh), and Tarun Plus (₹10 lakh to ₹20 lakh), tailored to the growth stage and funding requirements of borrowers.
PMMY loans cater to both term financing and working capital needs across various sectors, including manufacturing, trading, and services, as well as allied agricultural activities.
This initiative is part of a larger financial inclusion strategy focused on three key areas: 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 and contribute to the vision of a 'Viksit Bharat' by the year 2047.