Launched by Prime Minister Shri Narendra Modi on April 8, 2015, the Pradhan Mantri Mudra Yojana (PMMY) has successfully completed 10 remarkable years of empowering India’s micro and small entrepreneurs. The scheme aims to “Fund the Unfunded” by providing collateral-free loans of up to ₹20 lakh for income-generating activities in the non-corporate, non-agricultural sectors.
Since its inception, over ₹33.65 lakh crore worth of loans have been disbursed to 52.37 crore beneficiaries across India, instilling new confidence among small business owners. Notably, 68% of these loans have been availed by women entrepreneurs, giving a major boost to women's empowerment in the country.
The Union Budget 2024-25, Finance Minister Smt. Nirmala Sitharaman announced the enhancement of the Mudra loan limit to ₹20 lakh, effective from October 24, 2024. A new category, ‘Tarun Plus’, has been introduced under the scheme for beneficiaries who have previously availed loans under the ‘Tarun’ category and repaid them on time.
These loans are being extended through banks, NBFCs, microfinance institutions, and other financial institutions, with credit guarantee support provided through the Credit Guarantee Fund for Micro Units (CGFMU).
The Finance Minister highlighted that PMMY has become one of the most successful entrepreneurship promotion initiatives globally. The scheme has played a pivotal role in mainstreaming entrepreneurs from SC, ST, OBC, and minority communities, promoting equitable development.
Loan Categories under the Scheme: The Mudra Yojana, loans are categorized 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. These loans are being used to support a wide range of activities, including manufacturing, services, trade, and agriculture-allied sectors such as dairy, poultry, and beekeeping.
Woman Entrepreneur from MSME Sector Shares Her Success:
A woman entrepreneur from Raebareli expressed her heartfelt gratitude to Prime Minister Modi for the support extended to the MSME sector. She shared how obtaining licenses and funding has become significantly easier than before. Highlighting her bakery business, she reported a monthly income of ₹2.5 to ₹3 lakh, and stated that her enterprise now provides employment to 7–8 people.
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