The Pradhan Mantri Mudra Yojana (PMMY) has played a crucial role in funding micro-entrepreneurs in India, according to Prime Minister Narendra Modi. The scheme, which was launched eight years ago, has facilitated easy collateral-free credit of up to Rs 10 lakh to micro-entrepreneurs for income-generating activities.

As of March 24, 2023, more than 408.2 million loans amounting to Rs 23.2 trillion have been sanctioned under the PMMY. The loans have been divided into three categories based on the need for finance and the stage in maturity of the business. These are Shishu (loans up to Rs 50,000), Kishore (loans above Rs 50,000 and up to Rs 5 lakh), and Tarun (loans above Rs 5 lakh and up to Rs 10 lakh). The PMMY aims to provide access to credit for small entrepreneurs and promote financial inclusion.

Supporting Unserved and Under-Served Entrepreneurs

The PMMY has supported the unserved and under-served sections of society within the framework of institutional credit, helping millions of MSME enterprises in the formal economy to get out of the clutches of money-lenders who offer very high-cost funds. This policy has led to the growth of Micro, Small & Medium Enterprises (MSMEs), contributing massively to the ‘Make in India’ programme, as strong domestic MSMEs lead to increased indigenous production both for domestic markets as well as for exports.

The scheme has helped in the generation of large-scale employment opportunities at the grassroots level, proving to be a game changer while boosting the Indian economy. Approximately 69 per cent of the total loans have been sanctioned to women entrepreneurs, while 51 per cent loans have been sanctioned to SC/ST and OBC categories of borrowers.

Financial Inclusion and Social Security Schemes

The PMMY is one of the pillars of financial inclusion, which is reflected through the scheme being implemented with the objective of providing access to credit for small entrepreneurs. The Indian government has called a meeting of the managing directors (MD) and chief executive officers (CEOs) of public sector banks (PSBs) along with the CEO, the National Payments Corporation of India (NPCI) on April 13 to review the progress under financial inclusion and social security schemes.

The meeting will be chaired by Financial Services Secretary Vivek Joshi and will review schemes such as the PMMY, Stand Up India and Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme, among others. The aim of the meeting is to review the progress made under these Government schemes and identify areas for improvement.


The PMMY has been successful in promoting financial inclusion and supporting micro-entrepreneurs in India. The scheme has provided collateral-free credit to millions of small entrepreneurs, leading to the growth of MSMEs and contributing to the ‘Make in India’ programme. The Indian government’s commitment to financial inclusion and social security schemes is reflected through its review of progress under these schemes, ensuring that they continue to support the unserved and under-served sections of society.

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