Can One Scheme Really Empower 52 Crore Indians Without Collateral? PM Mudra Yojana’s ₹33 Lakh Crore Revolution Says Yes

The Pradhan Mantri Mudra Yojana (PMMY), which completed 10 years this week, is not just a government scheme- it is a movement that transformed India’s economic landscape by giving people the power to dream big without worrying about collateral.

Launched in April 2015, PMMY was a promise to empower small businesses, vendors, and skilled individuals with easy access to loans. Over the past decade, loans worth over Rs 33 lakh crore have been sanctioned under the scheme, and more than 52 crore loans have been disbursed across India.

What makes PMMY unique is its simplicity. No high-end paperwork, no collateral, and no middlemen. Just one powerful idea: trusting the capability of India’s grassroots entrepreneurs. Whether it’s a vegetable vendor, a mechanic, or a tailor, the scheme gave them dignity and a platform.

According to official government data, 68% of the beneficiaries are women, and 50% of accounts are held by people from SC, ST, and OBC communities. These aren’t just numbers- they are silent revolutions in homes, cities, and villages.

In Tamil Nadu, over Rs 3.23 lakh crore has been disbursed through Mudra loans. Uttar Pradesh follows with Rs 3.14 lakh crore, and Karnataka with Rs 3.02 lakh crore. These figures prove how the scheme has spread beyond just urban centres, touching remote areas and small towns.

And what about the Union Territories? Jammu and Kashmir, often seen only through the lens of conflict, is leading among UTs with Rs 45,815 crore disbursed to over 21 lakh beneficiaries. That’s not just economic support- it’s confidence in a region striving for peace and prosperity.

Categorised Help for Every Dreamer
The scheme works in three segments:

• Shishu (loans up to ₹50,000) for starters
• Kishor (₹50,000–₹5 lakh) for growing businesses
• Tarun (₹5 lakh–₹10 lakh) for scaling up

Over the years, there’s been a visible shift. In 2015-16, only 5.9% of loans were in the Kishor category. By 2024-25, that figure rose to 44.7%, showing that businesses funded earlier have grown and now need larger loans to expand. The average loan size tripled from ₹38,000 to ₹1.02 lakh.

Empowering Women, Changing Economies

Mudra Yojana’s biggest success may not lie in just job creation, but in women’s empowerment. With a compound annual growth rate (CAGR) of 13%, average loans to women reached Rs 62,679. Simultaneously, women’s average deposit balance increased to Rs 95,269, a growth of 14% CAGR. This suggests a clear correlation: credit access boosts savings and financial independence.

States that actively pushed for loans to women also saw higher employment in women-led MSMEs. That is not just a policy win, it’s a societal shift, one that deserves more spotlight.

Credit to Micro, Small and Medium Enterprises (MSMEs) has grown from Rs 8.51 lakh crore in FY14 to Rs 27.25 lakh crore in FY24, and it’s expected to cross Rs 30 lakh crore in FY25. The MSME sector’s share in total bank credit has risen from 15.8% to nearly 20%, a major leap in India’s credit ecosystem.

This surge isn’t just good economics. It’s smart politics, smart governance, and smart nation-building.

While the scheme has achieved a lot, there is still a question: Are we doing enough to turn small business loans into long-term businesses?

Many small entrepreneurs still struggle with business education, digital access, and marketing strategies. Merely giving loans is not the full solution—follow-up support, mentorship, and infrastructure development are the need of the hour.

For example, how many Shishu loan holders have upgraded to Tarun level in five years? Data on this would reveal how many small businesses are actually scaling.

Also, with rising inflation and input costs, is a Rs 10 lakh ceiling enough? Should the government consider revising the caps?

The Way Forward: Credit is the Start, Support is the Future
The Mudra Yojana has undoubtedly been a game-changer. But now, the game has evolved. Credit access must now be coupled with:

• Skill training
• Digital marketing tools
• E-commerce access
• Ease in taxation and compliance

Mudra Yojana has given opportunities to countless people to showcase their entrepreneurial skills. Interacted with some of the beneficiaries of the scheme. Their journey is inspiring. #10YearsOfMUDRA https://t.co/QcoIK1VTki

— Narendra Modi (@narendramodi) April 8, 2025

In his message on X, PM Narendra Modi wrote, “Mudra Yojana has given opportunities to countless people to showcase their entrepreneurial skills.” His words are backed by stories, like a small food vendor becoming a restaurant owner or a tailor building her own boutique.

But as we enter the next decade, the goal should not just be more disbursements, it should be more success stories. Because when one Mudra loan changes a life, it’s not just economics. It’s nation-building.

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