The Pradhan Mantri Mudra Yojana (PMMY), launched by Prime Minister Narendra Modi on April 8, 2015, has completed 11 years, marking a significant milestone in promoting financial inclusion and supporting small and micro enterprises across India.

The scheme, aimed at providing collateral-free loans of up to Rs 20 lakh to non-corporate, non-farm small businesses, has played a pivotal role in expanding access to credit for underserved sections. Designed around the vision of “Funding the Unfunded,” PMMY has contributed to strengthening grassroots entrepreneurship and boosting economic participation.

Union Finance Minister Nirmala Sitharaman highlighted that the scheme has transformed India’s credit landscape over the past decade by enabling millions of individuals to enter entrepreneurship. She noted that PMMY has helped democratise access to finance by removing traditional barriers faced by small borrowers.

According to official data, more than 57.79 crore loans have been sanctioned under the scheme, with total disbursements exceeding Rs 40.07 lakh crore. Notably, around two-thirds of the loans have been extended to women, while nearly one-fifth have supported first-time entrepreneurs.

Minister of State for Finance Pankaj Chaudhary emphasized that PMMY has been instrumental in promoting micro-entrepreneurship and financial inclusion, particularly among marginalized communities, including SC/STs, OBCs, and women. The scheme has also helped reduce dependence on informal lending sources.

The programme operates through four loan categories—Shishu, Kishor, Tarun, and Tarun Plus—catering to different stages of business growth. It supports sectors such as manufacturing, trading, services, and allied agricultural activities, with interest rates regulated by RBI guidelines.

As India marks over a decade of PMMY, the government reiterated its commitment to advancing financial inclusion through its core pillars—“Banking the Unbanked,” “Securing the Unsecured,” and “Funding the Unfunded”—with the aim of fostering inclusive growth and achieving the vision of a developed India by 2047.