10 Years of PM Mudra Yojana (PMMY): Top loan disbursing states in India, key insights, and more details

Pradhan Mantri Mudra Yojana: Celebrating a Decade of Empowerment

On April 8, 2025, the Pradhan Mantri Mudra Yojana (PMMY) marks a significant milestone—its tenth anniversary. Launched in April 2015 by Prime Minister Narendra Modi, the scheme was designed to foster financial inclusion and self-employment among micro-entrepreneurs. With its primary objective of providing collateral-free credit, PMMY has helped millions of small businesses and individuals in rural and urban India. The program’s success reflects the government’s ongoing commitment to empowering small businesses, especially women, and contributing to the nation’s economic growth.

The Core Objectives of PMMY

The core aim of the Pradhan Mantri Mudra Yojana is to provide easy access to financial resources for micro-entrepreneurs, who often struggle to obtain loans from traditional banking institutions. Through this initiative, the government aims to offer financial support to individuals running micro and small businesses, especially those in rural areas and the unorganized sectors, including industries like manufacturing, trading, and services.

PMMY provides loans ranging from ₹50,000 to ₹10 lakh without the need for collateral. This has helped small business owners who previously struggled with financial constraints to get the funds they need to start or expand their ventures. The loans are available under three categories: Shishu (up to ₹50,000), Kishore (₹50,000 to ₹5 lakh), and Tarun (₹5 lakh to ₹10 lakh). These loans cater to a wide range of sectors, including agriculture, dairy farming, poultry, beekeeping, and more. They have been a crucial tool in promoting self-employment and entrepreneurship, particularly among disadvantaged communities.

Key Achievements Over the Last Decade

Since its launch, the Pradhan Mantri Mudra Yojana has made a substantial impact on India’s economy and its micro-entrepreneurs. According to the latest figures from the Press Information Bureau (PIB), over 52 crore loans have been sanctioned under PMMY, amounting to a staggering ₹32.61 lakh crore. One of the most notable achievements of the scheme is the high participation of women, who account for 68 percent of all Mudra beneficiaries. This highlights the growing empowerment of women in the entrepreneurial space, making it an important step toward gender equality in the business sector.

State-Level Disbursement: Key Contributors

The success of PMMY is not limited to the national level; individual states have also played a significant role in the disbursement of loans. Tamil Nadu, for instance, stands out with the largest loan disbursement among states, having received ₹3,23,647.76 crore as of February 28, 2025. This figure underscores the state’s thriving entrepreneurial spirit and the importance of such financial initiatives in bolstering small businesses.

Uttar Pradesh follows closely with ₹3,14,360.86 crore, indicating a robust uptake of Mudra loans in the state. Karnataka ranks third with ₹3,02,146.41 crore, while West Bengal and Bihar have also received substantial disbursements—₹2,82,322.94 crore and ₹2,81,943.31 crore, respectively. These figures reflect the wide-reaching impact of PMMY across India and the growing support for micro-entrepreneurs in various regions.

While states like Tamil Nadu, Uttar Pradesh, and Karnataka lead in loan disbursements, Union Territories have also benefited from the scheme. Jammu and Kashmir, for instance, recorded the highest loan disbursement among Union Territories, with ₹45,815.92 crore across 21,33,342 accounts. This indicates the importance of PMMY in supporting the growth of small businesses even in smaller regions and areas with limited access to financial services.

The Impact on the Indian Economy

The Pradhan Mantri Mudra Yojana has played a pivotal role in shaping India’s small business landscape over the last decade. By providing easy access to finance, the scheme has created opportunities for millions of individuals to become self-employed and run successful businesses. It has helped reduce dependence on traditional sources of funding, such as moneylenders or informal channels, by providing a formal, accessible, and government-backed option.

Moreover, PMMY has contributed to job creation in the country. Many small businesses that have benefited from Mudra loans have been able to expand, hire employees, and increase their production capacity, thus helping to reduce unemployment rates in rural and semi-urban areas. The scheme has also helped strengthen India’s supply chains by providing financing to micro-enterprises involved in manufacturing and agriculture.

In addition to economic growth, PMMY has had a significant social impact by promoting financial inclusion. It has brought millions of previously unbanked individuals into the formal financial sector, helping them build a credit history and access further financial products and services. This is particularly important for those in marginalized communities, who often face barriers to traditional banking services.

Women Empowerment and Financial Inclusion

One of the most notable aspects of the Pradhan Mantri Mudra Yojana is its emphasis on women empowerment. As mentioned earlier, 68 percent of the total Mudra beneficiaries are women. This is a testament to the program’s success in promoting gender equality and providing women with the financial support they need to start and grow their businesses.

PMMY has enabled women entrepreneurs to overcome traditional gender-based barriers to finance. For many women in rural areas, access to financial services has historically been limited, and they have faced societal and cultural challenges in pursuing entrepreneurial ventures. The scheme has given them the tools and resources to break through these barriers, build their businesses, and contribute to their families’ financial well-being.

The Road Ahead: Enhancing PMMY’s Reach

As the Pradhan Mantri Mudra Yojana enters its second decade, there are several opportunities to further enhance its impact. With the growing digitization of India’s economy, there is an opportunity to streamline the application process for Mudra loans and make them more accessible through digital platforms. Increasing awareness of the scheme in rural areas and providing better training and guidance to small entrepreneurs can further improve its outcomes.

Additionally, strengthening partnerships between the government, financial institutions, and small businesses will ensure that PMMY continues to meet the evolving needs of entrepreneurs. There is also potential to offer more tailored loan products that cater to the specific needs of different sectors, including agriculture, technology, and services.

Conclusion

The Pradhan Mantri Mudra Yojana has made significant strides in improving financial inclusion and empowering micro-entrepreneurs across India. With over ₹32.61 lakh crore disbursed in loans and millions of beneficiaries, the scheme has changed the lives of countless individuals, helping them start businesses, create jobs, and build a better future.

As PMMY celebrates its tenth anniversary, it is clear that the scheme has achieved its goals of fostering self-employment and enhancing financial inclusion. Moving forward, the challenge lies in ensuring that this momentum continues, reaching even more people and helping them unlock their entrepreneurial potential.

In the coming years, with continued support from the government, financial institutions, and beneficiaries, PMMY has the potential to further contribute to India’s economic growth and create a thriving ecosystem for small businesses across the country.