Over 52 crore loans worth Rs 32.61 lakh crore have been sanctioned under the PM Mudra Yojana as the scheme completes 10 years of its launch on April 8, 2015, according to official figures.
The scheme has helped to spread business growth to small towns and villages, where first-time entrepreneurs are taking charge of their destinies, According to the “Outcomes of ModiNomics 2014-24 report by SKOCH, at least 5.14 crore person-years of employment on average every year have been generated since 2014, with the PMMY itself adding 2.52 crore steady and sustainable employment as an average per year since 2014. One example of this transformation is J&K; it has highly benefited under the MUDRA scheme, which is evident from the fact that 20,72,922 loans have been sanctioned there.
The scheme has led to the empowerment of women, as nearly 70 per cent of Mudra loans have been availed by women entrepreneurs, enhancing their financial independence and contributing to gender equality. In the last nine years (FY25 over FY16), while per woman PMMY disbursement amount increased by a compound annual growth rate (CAGR) of 13 per cent to Rs. 62,679, the per woman incremental deposits increased by a CAGR of 14 per cent to Rs. 95,269, data compiled by the Finance Ministry shows.
The IMF has lauded the PM Mudra Yojana, with a report of the UN arm stating that the scheme, which extends collateral-free loans with a special focus on women’s entrepreneurship, has helped boost the number of women-owned MSMEs, which now stand at more than 2.8 million. In 2024, the IMF said that an enabling policy environment for entrepreneurship through various programs, such as the Pradhan Mantri Mudra Yojana, is contributing to increased self-employment and formalisation through credit.
According to an SBI report, in the past 10 years, Mudra has helped open over 52 crore loan accounts, reflecting a huge surge in entrepreneurial activity. Kishor loans (Rs. 50,000-Rs 5 lakh), which support growing businesses, have surged from 5.9 per cent in FY 16 to 44.7 per cent in FY25, demonstrating a natural progression from micro to small enterprises. The Tarun category (Rs. 5 lakh-Rs 10 lakh) is also gaining traction, proving that Mudra is not just about starting businesses but helping them scale up.
The SBI report highlights a significant rise in credit flow to MSMEs, fuelled by Mudra’s impact. MSME lending surged to Rs. 27.25 lakh crore in FY24 from Rs. 8.51 lakh crore in FY14 and is projected to cross Rs. 30 lakh crore in FY25.
MSME credit in FY24 makes up nearly 20 per cent of total bank credit, up from 15.8 per cent in FY 14, showcasing its growing role in India’s economy. This credit expansion has allowed businesses in smaller towns and villages to access financial support that was once unavailable, strengthening India’s self-reliant economy and job creation at the grassroots level, the report further states.
