Mudra loans power millions of small businesses, fuelling India's growth

By expanding the list of beneficiary businesses, the scheme is increasing support for micro and small enterprises and helping India in achieving its ambition to become a $5 trillion economy

For the country’s 57.7 million micro and small enterprises, the launch of the Pradhan Mantri Mudra Yojana (PMMY) a decade ago on April 8, 2015, was a watershed moment. Aimed at bridging prevailing credit gaps through collateral-free business loans, this initiative has been instrumental in empowering millions of first-time entrepreneurs and small business owners with formal credit access.

 

Focused on funding the unfunded, PMMY was launched with three categories of Mudra loans, Shishu, Kishor and Tarun, providing a maximum of ~50,000, ~500,000 and ~10 lakh by way of financial assistance to eligible borrowers. Each loan category was designed to cater