10 yrs of PM Mudra Yojana: Women lead as loans cross 52 Cr mark, totalling Rs 32.61 Lakh Crore

New Delhi: As the Pradhan Mantri Mudra Yojana (PMMY) completes 10 years since its launch on April 8, 2015, its most transformative impact has been on women’s financial empowerment. According to official data, nearly 70 percent of the 52 crore loans sanctioned under the scheme have been availed by women, helping them gain economic independence and contribute meaningfully to the country’s entrepreneurial landscape.

Data from the Finance Ministry shows a notable rise in both credit and savings among women beneficiaries. Between FY16 and FY25, the average loan amount per woman borrower increased at a compound annual growth rate (CAGR) of 13 percent to Rs 62,679, while the average incremental deposits rose at a CAGR of 14 percent to Rs 95,269, reflecting enhanced financial participation by women at the grassroots.

The International Monetary Fund (IMF) has also recognised this gender-focused impact. In a recent report, the global body stated, "The scheme, which extends collateral-free loans with a special focus on women’s entrepreneurship, has helped boost the number of women-owned MSMEs, which now stand at more than 2.8 million." In 2024, the IMF further observed that "an enabling policy environment for entrepreneurship through various programmes, such as the Pradhan Mantri Mudra Yojana, is contributing to increased self-employment and formalisation through credit."

Beyond women-led enterprises, PMMY has had a far-reaching impact on employment and entrepreneurship across India. As per the Outcomes of ModiNomics 2014–24 report by SKOCH, the scheme has helped generate an average of 2.52 crore sustainable job opportunities every year since 2014. Overall, it contributed to the creation of 5.14 crore person-years of employment annually.

Jammu and Kashmir is among the regions that have seen remarkable growth under the scheme, with 20,72,922 loans sanctioned, showcasing the scheme's reach into previously underserved geographies. A senior official noted that "the scheme has helped to spread business growth to small towns and villages, where first-time entrepreneurs are taking charge of their destinies."

According to an SBI report, more than 52 crore Mudra loan accounts have been opened in the past decade, marking a huge rise in entrepreneurial activity. The Kishor category of loans (Rs 50,000 to Rs 5 lakh), meant for scaling up businesses, grew from 5.9 per cent in FY16 to 44.7 per cent in FY25, while the Tarun category (Rs 5 lakh to Rs 10 lakh) is also gaining traction—evidence that Mudra is fostering not just startups but also enterprise growth.

The scheme’s impact on MSME financing has also been profound. Lending to MSMEs surged from Rs 8.51 lakh crore in FY14 to Rs 27.25 lakh crore in FY24 and is projected to cross Rs 30 lakh crore in FY25. The share of MSME credit in total bank lending rose to nearly 20 percent in FY24, up from 15.8 per cent a decade earlier.

This expansion of credit has enabled greater financial inclusion in smaller towns and rural areas, boosting self-employment and strengthening India’s move towards a self-reliant economy.

IANS