India is commemorating a landmark achievement—the 10th anniversary of the Pradhan Mantri Mudra Yojana (PMMY), a scheme that has revolutionized the entrepreneurial landscape of the nation. Launched on April 8, 2015, under the visionary leadership of the Prime Minister, the initiative has extended collateral-free loans to small and micro-entrepreneurs, empowering millions across the country and fostering inclusive growth.
Designed to “Fund the Unfunded,” PMMY has addressed the critical challenge faced by small enterprises in accessing formal institutional credit. Over the past decade, the scheme has sanctioned a staggering $405 billion through 523 million loan accounts, instilling confidence in first-generation entrepreneurs and marginalized communities. In recognition of its success, the scheme’s loan limit was raised to $24,000 as announced during the Union Budget 2024-25, further strengthening its support for aspiring entrepreneurs.
The introduction of the “Tarun Plus” category has added a new dimension to the scheme. Specifically tailored for entrepreneurs who have successfully repaid loans under the Tarun category, this initiative enables access to funding between $12,000 and $24,000. The Credit Guarantee Fund for Micro Units (CGFMU) provides coverage for these enhanced loans, reinforcing the government’s commitment to nurturing a robust entrepreneurial ecosystem.
PMMY’s impact is evident in its outreach to marginalized sections of society. Since 2015, loans worth $140 billion have been sanctioned to communities belonging to Scheduled Castes, Scheduled Tribes, and Other Backward Classes, reflecting the principles of “Sabka Saath, Sabka Vikas, Sabka Vishwas, and Sabka Prayaas.” Remarkably, 68% of the loan accounts under PMMY have been sanctioned to women, establishing the scheme as a powerful tool for economic empowerment and driving women-led entrepreneurship.
The scheme’s contribution extends beyond financial inclusion. It has catalyzed the growth of Micro, Small, and Medium Enterprises (MSMEs), which play a pivotal role in complementing large industries and contributing to the nation’s industrial growth. These enterprises have expanded their presence across diverse sectors, meeting domestic and international market demands while driving innovation.
Advancements in technology and data-driven lending practices have further amplified PMMY’s impact. The introduction of flexible repayment terms and adherence to Reserve Bank of India guidelines ensures accessibility and affordability for borrowers. Loans under the scheme cover manufacturing, trading, and service sectors, as well as allied agricultural activities such as poultry, dairy, and beekeeping.
The success of PMMY is reflected in its achievements across different categories—Shishu, Kishor, Tarun, and the newly introduced Tarun Plus. In the Shishu category alone, a sanctioned amount of $107 billion has empowered millions of first-time entrepreneurs, demonstrating the government’s unwavering support for grassroots development.
As the nation celebrates this milestone, PMMY stands as a testament to the transformative power of financial inclusion. By “Banking the Unbanked,” “Securing the Unsecured,” and “Funding the Unfunded,” the scheme has laid the foundation for a self-reliant India, propelling the country toward its vision of becoming a developed nation by 2047. Through its decade-long journey, PMMY has not only fueled the aspirations of millions but has also created a culture of entrepreneurship that promises to shape India’s future.
This monumental achievement underscores the government’s dedication to fostering an environment of innovation, inclusivity, and sustainable growth. As the scheme enters its next phase, it reaffirms its promise to continue empowering dreams, one loan at a time.
