PRIME Minister Narendra Modi on Tuesday said more than Rs 33 lakh crore of collateral-free loans have been sanctioned under Mudra Yojana, empowering countless individuals to showcase their entrepreneurial skills. Interacting with the select beneficiaries of the PM Mudra Yojana (PMMY) at his residence on the 10th anniversary of the scheme, he said it has helped promote the spirit of entrepreneurship among the youth of the country and given them confidence to become job providers rather than job seekers. He highlighted that 52 crore loans have been disbursed under the scheme, a monumental achievement unparalleled globally. “It is particularly heartening that half of the Mudra beneficiaries belong to SC, ST and OBC communities, and over 70 per cent of the beneficiaries are women. With the objective of funding the unfunded, Prime Minister Modi on April 8, 2015 launched PMMY to provide collateral-free institutional credit through Member Lending Institutions.

 

The Prime Minister urged individuals to inspire and support at least five to ten others, fostering confidence and self-reliance among them. “Every Mudra loan carries with it dignity, self-respect and opportunity. In addition to financial inclusion, this scheme has also ensured social inclusion and economic freedom,” he said. In the Mudra scheme, he said, the highest number of women have come forward. Women have applied for the most loans, received the most loans, and are also the fastest to repay them. In last 10 years, the Prime Minister said Rs 33 lakh crore has been disbursed to the citizens without the need for guarantees and this amount is unprecedented and surpasses any financial support extended to wealthy individuals collectively.

 

He expressed his trust in the nation’s talented youth who have utilised the funds effectively to generate employment and stimulate the economy. Highlighting the remarkable confidence displayed by the Government in expanding the scope of Mudra loans, which initially ranged from Rs 50,000 to Rs 5 lakh, to now reaching Rs 20 lakh, the Prime Minister noted that this expansion reflects the trust placed in the entrepreneurial spirit and capabilities of India’s citizens, which has strengthened through the successful implementation of the scheme. The Prime Minister also assured the beneficiaries that the Government would review the scheme and take steps to further improve it. 

 

 

UNION Finance Minister Nirmala Sitharaman on Tuesday said it is heartening to note that nearly 68 per cent of the total Pradhan Mantri MUDRA Yojana (PMMY) loan accounts have been sanctioned to women, becoming a tool for empowerment and enabling them to contribute to national economic growth and also inspiring the next generation of female entrepreneurs. Hailing the scheme's impact, the Finance Minister said that in line with the Budget 2024-25 announcement, “the introduction of the Tarun-Plus category last year, with an increased loan limit of Rs 20 lakh, will further help thriving entrepreneurs expand and unlock their full potential.”

 

The PMMY, launched on April 8, 2015, by Prime Minister Narendra Modi, is celebrating 10 glorious years of empowering small and micro-entrepreneurs across India. Aimed at fostering financial inclusion, PMMY provides easy, collateral-free loans up to Rs 10 lakh for non-corporate and non-farm income-generating activities. To strengthen support for aspiring entrepreneurs, the Finance Minister announced an increase in the loan limit to Rs 20 lakh during the Union Budget 2024-25.

 

The newly-announced loan category, Tarun Plus, is designed specifically for those who have previously availed and successfully repaid loans under the Tarun category, allowing them to access funding between Rs 10 lakh and Rs 20 lakh. Additionally, the Credit Guarantee Fund for Micro Units (CGFMU) will now provide guarantee coverage for these enhanced loans, further reinforcing the government’s commitment to nurturing a robust entrepreneurial ecosystem in the country. “With over Rs 33.65 lakh crore sanctioned to more than 52 crore MUDRA loan accounts, the scheme has proved to be an important milestone in giving wings to the aspirations of crores of entrepreneurs, particularly those belonging to marginalised sections of society,” said FM Sitharaman. "Since 2015, Rs 11.58 lakh crore worth of MUDRA loans have been sanctioned to various marginalised communities belonging to Scheduled Castes, Scheduled Tribes and OBCs, realising PM's mantra of 'Sabka Saath, Sabka Vikas, Sabka Vishwas and Sabka Prayaas,” she mentioned.

 

According to Union Minister of State (MoS) for Finance, Pankaj Chaudhary, the PMMY is one of the most significant initiatives not only in India but also globally, aimed at promoting entrepreneurship. “Financial inclusion is one of the top priorities of the government, as it plays a vital role in achieving inclusive growth. PMMY provides a platform for small entrepreneurs to access loan support from banks, NBFCs, and MFIs,” said Chaudhary. While launching the scheme, PM Modi stated that supporting India’s small entrepreneurs is one of the most effective ways to help the Indian economy grow and prosper. The scheme has provided crucial financial assistance to a vast number of entrepreneurs, helping them set up and operate their businesses and instilling a sense of financial security in them.