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Mudra Yojana at 11: Empowering 58 Crore Loans, Women Entrepreneurs Lead

The Pradhan Mantri Mudra Yojana completes 11 years, having sanctioned approximately 58 crore loans totaling over ₹40 lakh crore to micro-enterprises and small businesses. A significant two-thirds of these loans have been extended to women entrepreneurs, empowering them as key drivers of economic change. The scheme has achieved a record low Non-Performing Asset (NPA) ratio of 2.3%, demonstrating strong financial discipline at the grassroots level. Furthermore, it has successfully reached Tier 2, Tier 3 cities, and rural regions, with nearly half of the ₹3.5 lakh crore disbursed benefiting SC/ST and OBC communities.

Key Points: 11 Years of Mudra Yojana: Impact on Entrepreneurs & Economy

  • 58 crore loans sanctioned
  • Two-thirds beneficiaries are women
  • NPA dips to record 2.3%
  • 21% loans to first-time entrepreneurs
3 min read

11 years of Mudra Yojana: How first-time entrepreneurs, micro-businesses are stepping forward

Over 11 years, PM Mudra Yojana sanctioned 58 crore loans worth ₹40 lakh crore, with 2/3rd going to women entrepreneurs. NPAs at record low 2.3%.

"Two-thirds of the Mudra loans have been sanctioned to women entrepreneurs - Government estimates"

New Delhi, April 8

The Pradhan Mantri MUDRA Yojana, the flagship programme of the Modi government, has marked 11 years of operation, aimed at funding the 'unfunded' micro enterprises, small businesses and setting the path for their growth.

Since its inception on this day in 2015, the programme has been instrumental in powering the business dynamics of small businesses and first-time entrepreneurs, in particular.

According to government estimates, around 58 crore loans worth more than Rs 40 lakh crore have been sanctioned under the programme to date.

Two-thirds of the Mudra loans have been sanctioned to women entrepreneurs, while about one-fifth were extended to first-time entrepreneurs, making them the biggest beneficiaries.

By enabling collateral-free credit, the scheme has been quietly reshaping the foundation of India's economy, and this is reflected in the way the first-time entrepreneurs, especially women and underserved communities, are stepping forward.

According to information gathered by MyGovIndia, a citizen engagement platform of the Government of India, the scheme has spurred the growth of first-time entrepreneurs while spawning a congenial environment for small businesses to contribute to livelihoods as well as the country's economic outlook.

21 per cent loans given to new entrepreneurs

About 21 per cent of the total Mudra loans worth Rs 12,000 crore have been given to new entrepreneurs. This loan also comes without collateral, thus encouraging more young entrepreneurs to come forward and avail loans without conditions. This has apparently led to the mushrooming of first-time entrepreneurs.

NPA dips to 2.3 per cent

Financial discipline, limited to big corporate houses and financial institutions, got emulated at the grassroots as well, and the data shows NPA reducing to an all-time low of 2.3 per cent. This has facilitated banks to open doors to more loan-seekers while limiting their risk exposure.

Growth of Lakhpati Didis

Collateral-free loans up to Rs 20 lakh crore have been given to Self-Help Groups (SHGs), facilitating the growth potential of Lakhpati Didis.

This has ensured that women emerge as "powerful drivers" of economic change, and their growing confidence in Mudra Yojana is a testament to this belief. According to estimates, two out of every three Mudra loan beneficiaries are women.

Last-mile delivery of loans

The scheme has seen growth in Tier 2, Tier 3 cities and also rural regions. Over Rs 3.5 lakh crore have been disbursed to 6.15 crore beneficiaries, out of which 49 per cent belong to SC/ST and OBC groups, as per data shared by MyGovIndia.

Kishore loans

The scheme has helped generate a pool of micro-entrepreneurs. As evident from the numbers, about 74 per cent of loans have been granted to micro businesses, and there has also been a sharp rise in Kishor loans, accounting for a share of 40-45 per cent in the total loans disbursed.

Notably, the Mudra Yojana operates under four categories -- Shishu (loans up to Rs 50,000), Kishor (Rs 50,000 to Rs 5 lakh), Tarun (Rs 5 lakh to Rs 10 lakh) and Tarun Plus (Rs 10 lakh to Rs 20 lakh) -- depending on the stage of growth and funding needs of borrowers.

- IANS

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Reader Comments

R
Rohit P
The numbers are impressive, no doubt. 58 crore loans is massive. But I hope the ground reality matches the data. In my town, many small vendors complain about lengthy paperwork and bank officials asking for unofficial "fees" to process these collateral-free loans. The intent is good, execution needs to be cleaner.
S
Sarah B
As someone who works in development finance, the low NPA rate of 2.3% is remarkable for such a massive micro-lending scheme. It shows financial discipline at the grassroots. This model could be studied globally.
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Aman W
The real success is in Tier 2/3 cities and rural reach. My chacha in a UP village took a Kishor loan for his dairy equipment. He's doing well now. When money reaches the last mile, that's when you see real Bharat grow. 👏
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Kavya N
Two-thirds of loans to women! This is the most positive takeaway. Financial independence for women changes family dynamics and boosts the local economy. Hope they also get proper business training along with the loan.
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Michael C
Interesting breakdown with Shishu, Kishor, Tarun categories. It provides a growth path for a small business. Starting with 50k and potentially scaling to 20 lakhs as the business proves itself is a sensible, risk-managed approach.

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