In News:

The Pradhan Mantri MUDRA Yojana (PMMY), a flagship initiative aimed at providing financial support to unfunded micro and small enterprises, has completed 10 years since its launch in 2015.

Overview of PMMY

• Objective: To offer collateral-free institutional credit to non-corporate, non-farm micro and small enterprises.

• Loan Limit: Up to ?20 lakh without any collateral.
• Implementing Institutions (MLIs):
  • Scheduled Commercial Banks
  • Regional Rural Banks (RRBs)
  • Non-Banking Financial Companies (NBFCs)
  • Micro Finance Institutions (MFIs)

Categories of MUDRA Loans

Loan Category         Loan Amount Range

Shishu                      Up to ?50,000

Kishor                      ?50,000 to ?5 lakh

Tarun                       ?5 lakh to ?10 lakh

Tarun Plus               ?10 lakh to ?20 lakh

Key Achievements (2015–2025)

• Boost to Entrepreneurship: PMMY has sanctioned over 52 crore loans amounting to ?32.61 lakh crore, catalyzing a grassroots entrepreneurship revolution.
• MSME Sector Financing: Lending to MSMEs increased significantly:
  • From ?8.51 lakh crore in FY14
  • To ?27.25 lakh crore in FY24
  • Projected to exceed ?30 lakh crore in FY25
• Women Empowerment: 68% of Mudra beneficiaries are women, highlighting the scheme’s impact in fostering women-led enterprises.
• Social Inclusion:
  • 50% of loan accounts are held by SC, ST, and OBC entrepreneurs.
  • 11% of beneficiaries belong to minority communities, showcasing PMMY’s contribution to inclusive growth.