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Key Points

The Pradhan Mantri Mudra Yojana has emerged as a transformative financial initiative for marginalized communities in India. By providing accessible, collateral-free loans, the scheme has significantly boosted entrepreneurship among SC, ST, and OBC populations. Notably, women constitute nearly 68% of the total account holders, demonstrating the program's commitment to gender economic empowerment. This innovative approach is reshaping India's small business landscape by creating opportunities for traditionally underserved groups.

Key Points: Modi's Mudra Yojana Empowers SC ST OBC Women Entrepreneurs

  • Mudra Scheme provides collateral-free loans to marginalized entrepreneurs
  • 68% account holders are women across different social categories
  • Loan disbursements for women grew 13% annually since 2016
  • Program supports financial inclusion at grassroots level
2 min read

Around 50% of Mudra accounts belong to SC, ST and OBCs; boosting financial independence: SBI Report

SBI report reveals Mudra Scheme's groundbreaking impact on marginalized communities, with 50% accounts from SC/ST/OBC and 68% women entrepreneurs

"Close to half of the approx. 52 crore PMMY accounts belongs to SC/ST and OBC social classes - SBI Report"

New Delhi, April 3

The Pradhan Mantri Mudra Yojana (PMMY) is boosting financial independence among marginalized groups as nearly 50 per cent of the 52 crore PMMY accounts belong to individuals from Scheduled Castes (SC), Scheduled Tribes (ST), and Other Backward Classes (OBC), says a report by State Bank of India (SBI).

The report further emphasized that PMMY has become a crucial tool in making non-General category entrepreneurs financially self-sufficient. Launched in 2015 by the Prime Minister, the scheme aims to provide transparent, collateral-free, and adequate financial support to small businesses at the grassroots level.

Over the years, it has played a pivotal role in transforming the entrepreneurial landscape of the country.

The report said, "The impact of PMMY on bringing the hitherto entrepreneurially devoid social groups is commendable, instilling a true sense of financial independence... close to half of the approx. 52 crore PMMY accounts belongs to SC/ST and OBC social classes"

One of the key takeaways from the report is the remarkable participation of women in the scheme. Approximately 68 per cent of the total PMMY account holders are women entrepreneurs, reflecting the program's effectiveness in empowering women economically.

Additionally, around 11 per cent of the beneficiaries belong to minority communities, further strengthening the scheme's impact on financial inclusion.

The report also highlighted the substantial growth in financial support for women entrepreneurs under PMMY. Over the past nine years (FY25 compared to FY16), the per-woman loan disbursement amount has grown at a compound annual growth rate (CAGR) of 13 per cent, reaching Rs 62,679.

Simultaneously, the incremental deposits by women have increased at a CAGR of 14 per cent, amounting to Rs 95,269. This trend showcases the scheme's success in fostering financial stability and growth among women borrowers.

PMMY, implemented through the Micro Units Development and Refinancing Agency (MUDRA), has revolutionized credit accessibility for small and micro-entrepreneurs.

By ensuring easy and collateral-free loans, it has provided millions of aspiring business owners with the financial support needed to turn their ideas into successful ventures.

The report acknowledges that PMMY has been a transformative force in enabling marginalized communities to step into entrepreneurship, creating a ripple effect of financial independence and economic development.

As the scheme continues to expand, it is expected to further strengthen India's small business ecosystem, fostering inclusive growth and financial empowerment at the grassroots level.

- ANI

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Reader Comments

R
Rahul K.
This is such an encouraging report! Financial inclusion is so important for our country's growth. The women entrepreneurship numbers are especially impressive 👏
P
Priya M.
My aunt got a Mudra loan to start her tailoring business 3 years ago. Seeing her become financially independent has been amazing! More power to such schemes 💪
A
Amit S.
While the scheme is good, I hope there's more focus on financial literacy too. Many small entrepreneurs take loans but struggle with repayment due to lack of business knowledge.
S
Sunita R.
68% women beneficiaries! That's what real women empowerment looks like. No tokenism, just actual financial support. More power to all the women entrepreneurs out there ✨
V
Vikram J.
The growth numbers are impressive but I wonder about the success rate of these businesses. Would be good to see data on how many ventures actually become sustainable.
N
Neha P.
As someone from a small town, I've seen firsthand how Mudra loans have changed lives. People who never dreamed of owning businesses now have shops, small factories. This is real development!

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