‘Mudra Transformed MSME Credit’: Sitharaman on 11 Yrs of PMMY

GG News Bureau
New Delhi, 8th April: The Pradhan Mantri Mudra Yojana (PMMY) has completed 11 years, marking a major milestone in expanding credit access for small and micro entrepreneurs across India.

Launched in 2015 by Prime Minister Narendra Modi, the scheme aims to provide collateral-free loans of up to ₹20 lakh for non-corporate, non-farm income-generating activities.

Highlighting its impact, Union Finance Minister Nirmala Sitharaman said the scheme has “reshaped the credit landscape for MSMEs” and democratised access to finance by supporting those previously excluded from formal banking systems.

According to official data, over 57.79 crore loans worth ₹40.07 lakh crore have been sanctioned under the scheme so far, reflecting its wide reach and scale. A large share of beneficiaries includes women entrepreneurs, while a substantial portion comprises first-time business owners.

Minister of State for Finance Pankaj Chaudhary said PMMY has played a key role in promoting financial inclusion by enabling access to credit through banks, NBFCs and microfinance institutions.

The scheme operates under the broader vision of “Funding the Unfunded,” one of the pillars of India’s financial inclusion strategy, alongside “Banking the Unbanked” and “Securing the Unsecured.”

Loans under PMMY are categorised into Shishu, Kishor, Tarun and Tarun Plus, depending on the stage of business growth and funding requirements.

Officials said the initiative has generated large-scale self-employment opportunities, particularly among marginalised sections including Scheduled Castes, Scheduled Tribes, Other Backward Classes and women.

The government reiterated that PMMY will continue to play a crucial role in empowering entrepreneurs and supporting India’s journey towards becoming a developed nation by 2047.