Context :

• The Pradhan Mantri Mudra Yojana (PMMY), launched on 8 April 2015 with the objective of providing financing to micro enterprises and small businesses, has completed 11 years.

Pradhan Mantri Mudra Yojana (PMMY) :

• Launch : 8 April 2015
• Objective :

• • To provide financial assistance and support by offering collateral-free loans to non-corporate, non-agricultural small and micro entrepreneurs.
  • Non-corporate, non-agricultural micro and small entrepreneurs are individuals or entities that operate small-scale businesses outside the corporate and agricultural sectors.
  • These include self-employed workers, small retail shops, artisans, repair services, and other informal sector businesses, which often have limited capital and workforce.
• Type : Central Sector Scheme
• Financing Provision : Under this scheme, loans are provided through Member Lending Institutions (MLIs) such as Scheduled Commercial Banks, RRBs, NBFCs and MFIs.
• Refinance : It is managed by MUDRA Ltd. (Micro Units Development and Refinance Agency), which provides refinance to MLIs but does not directly lend to borrowers.
• Credit Guarantee : Provided through the Credit Guarantee Fund for Micro Units (CGFMU), established in 2015.

MUDRA loans are provided in four categories

• Four Categories : 'Shishu', 'Kishore', 'Tarun' and 'Tarun Plus'
• ‘Tarun Plus’ category was announced in July 2024.
• Shishu : Covers loans up to ₹50,000.
• Kishore : Covers loans above ₹50,000 and up to ₹5 lakh.
• Tarun : Covers loans above ₹5 lakh and up to ₹10 lakh.
• Tarun Plus : Covers loans above ₹10 lakh and up to ₹20 lakh.
• Loans meet the requirements of term financing and working capital in manufacturing, trading and service sectors, including allied agricultural activities such as poultry, dairy and beekeeping.
• Interest rates are determined as per RBI guidelines, with easy repayment terms available.

Achievements under PMMY as of 27 March 2026 :

• Women Loan Beneficiaries :

– ₹9.02 lakh crore disbursed under Shishu category

– ₹6.22 lakh crore under Kishore category

– ₹1.09 lakh crore under Tarun category

• Minority Loan Beneficiaries :

– ₹1.33 lakh crore under Shishu category

– ₹1.54 lakh crore under Kishore category

– ₹0.62 lakh crore under Tarun category

New Entrepreneurs / Accounts :

• Shishu Category :

– 8.80 crore accounts, out of which ₹2.47 lakh crore has been sanctioned and ₹2.42 lakh crore has been disbursed.

• Kishore Category :

– 2.79 crore accounts, with ₹5.09 lakh crore sanctioned and ₹4.87 lakh crore disbursed.

• Tarun Category :

– 55 lakh accounts, with ₹4.82 lakh crore sanctioned and ₹4.67 lakh crore disbursed.

Category-wise Details (Number of Loans and Sanctioned Amount):

International Recognition :

The IMF has consistently appreciated PMMY :

Year 2017 :

• Praised its role in providing financial access to women-led businesses.
• Highlighted its contribution in achieving financial inclusion by providing collateral-free loans to underserved sections.

Year 2019 :

• Appreciated its role in supporting micro units and providing refinance to financial institutions.
• Recognized the scheme as helpful in the development of micro enterprises in manufacturing, trade and services.

Year 2023 :

• The scheme’s focus on collateral-free loans and women entrepreneurship has supported more than 2.8 million women MSMEs.

Year 2024 :

• Programmes like PMMY were described as powerful policy tools for promoting self-employment, formalization and financial inclusion.