PM Mudra Yojana Marks 11 Years: ₹40 Lakh Crore Disbursed, 2/3 Loans to Women

Key Insight

PM Mudra Yojana’s 11‑year run fuels self‑employment and women’s empowerment through ₹40 lakh crore credit.

Key Facts

1. PM Mudra Yojana (PMMY) was launched in April 2015; 2026 marks its 11th anniversary.
2. Over ₹40 lakh crore (≈ US$ 480 billion) has been disbursed through 58 crore collateral‑free loans.
3. Approximately 66% (two‑thirds) of the sanctioned loans have been to women entrepreneurs.
4. The scheme targets the ‘unfunded’ segment – micro‑enterprises, small traders and start‑ups with turnover up to ₹5 crore.
5. PMMY operates under the Ministry of Finance, coordinated by the Small Industries Development Bank of India (SIDBI).
6. It is a flagship initiative of the Atmanirbhar Bharat programme, aiming to create self‑employment and reduce reliance on wage‑labour jobs.
7. Loans are classified into three categories – Shishu (≤ ₹50 000), Kishor (₹50 001‑₹5 lakh) and Tarun (₹5 lakh‑₹10 lakh).

Background

Micro‑credit is a key instrument for inclusive growth, especially in a country where a large informal sector lacks access to formal finance. PMMY aligns with the government's thrust on self‑employment, gender equity and the Atmanirbhar Bharat vision, making it a pivotal policy for the Indian economy and social development.

UPSC Syllabus

• Essay — Economy, Development and Inequality
• Prelims_GS — Sustainable Development and Inclusion
• GS3 — Inclusive Growth and issues arising from it

Mains Angle

GS III – Economy: Assess the impact of PM Mudra Yojana on inclusive growth, MSME financing and women’s economic empowerment. Possible question: "Critically evaluate the role of collateral‑free credit schemes in achieving self‑reliant India."