Context:
The Pradhan Mantri Mudra Yojana (PMMY) has emerged as a cornerstone of India’s financial inclusion and MSME development strategy. As it completes a decade, the scheme is being hailed for its transformative role in enhancing credit access, particularly for first-generation entrepreneurs, women, and marginalized communities.
Key Contributions of MSMEs in Indian Economy:
- Accounted for 30.1% of Gross Value Added (GVA) in FY 2022–23
- Contributed 45.79% to total exports in FY 2024–25
- Long-standing credit challenges addressed through India Stack and government-backed schemes like PMMY
Performance of PM Mudra Yojana:
- ₹5.32 trillion disbursed in FY24 (₹4.8 trillion disbursed by Feb 2025)
- Average loan size: ₹102,870 in FY25
- Loan category-wise share:
- Kishore (₹50,001–₹5 lakh): 51% of total disbursements
- Tarun (₹5 lakh–₹10 lakh): 29.1%
- Shishu (Up to ₹50,000): Smaller share, but foundational
- New Addition: Tarun Plus (₹10–₹20 lakh)
Unique Features of PMMY:
- Categorization based on business stage: Shishu, Kishore, Tarun, and Tarun Plus
- Collateral-free, security-light lending model
- Focus on cash-flow-based lending instead of traditional asset-based models
- Integration with Udyam Mitra portal enables online loan application
- Backed by MUDRA refinancing to ensure liquidity and credit flow
Impact Statistics (Cumulative):
- 520 million loans disbursed, totaling ₹33.19 trillion
- 260 million loans (50%) given to SC/ST/OBC beneficiaries
- 69% of loan accounts held by women entrepreneurs
- 5.7 crore loans availed by minority communities
SBI’s Role in PMMY:
- 17.2 million loans sanctioned, with total value exceeding ₹3 trillion
- Launch of MUDRABRE digital decisioning model via Jansamarth platform
- Emphasis on digitization, paperless processing, and quick approvals
- Strong network and credit expertise aiding scale-up of small businesses
Broader Economic & Social Impact:
- Catalyzed entrepreneurial culture across rural and urban India
- Helped unlock manufacturing and agri-allied potential
- Empowered traditionally excluded segments and promoted inclusive growth
- Supported India’s vision of a Viksit Bharat (Developed India)
Forward Path:
- Recognize achievements of the last decade
- Improve agility, efficiency, and inclusivity in the next phase
- Leverage learnings to enhance MSME resilience and economic contribution
The PM Mudra Yojana has significantly altered the financial landscape for India’s small businesses. With enhanced digital integration, targeted social outreach, and an inclusive financing model, it continues to act as a catalyst for grassroots entrepreneurship and economic self-reliance.
