11 YEARS OF PRADHAN MANTRI MUDRA YOJANA

Driving Financial Inclusion and MicroEnterprise Growth

- TDG NETWORK

Across India's cities, towns and villages, millions of small entrepreneurs sustain local economies through modest yet vital enterprises, ranging from neighbourhood shops and repair services to small-scale manufacturing and transport activities.

These micro businesses not only generate livelihoods but also support employment and essential services at the community level. However, for years, their growth was constrained by limited access to bank credit. Many relied on borrowing from friends, family, or local moneylenders, as they often lacked collateral and formal financial records required by institutions.The launch of the Pradhan Mantri MUDRA Yojana (PMMY) on 8 April 2015 marked a decisive step in bridging this gap. With the vision of "Funding the Unfunded," the scheme improves credit access and offers collateral-free loans up to Rs 20 lakh. Borrowers include non-corporate, non-farm micro and small enterprises across manufacturing, trading, services, and allied agricultural activities.

Notably, as of 27th March 2026, the scheme has disbursed loans worth Rs 40.07 lakh crore with over 57 crore accounts. Besides, 12 crore+ accounts belong to new entrepreneurshighlighting PMMY's role in bringing them into the formal financial system.

Over the past decade, PMMY has evolved into a powerful instrument of empowerment and aspiration. In doing so, it has strengthened grassroots entrepreneurship, deepened financial inclusion, and supported sustained growth of India's local economies.

DRIVING CREDIT TO THE LAST MILE: THE ARCHITECTURE

PMMY operates through a three-tier institutional structure comprising the Micro Units Development and Refinance Agency Ltd. (MUDRA), Member Lending Institutions (MLIs), and Beneficiaries (borrowers). This framework enables seamless flow of credit from formal financial institutions to micro enterprises through an intermediary-driven model.

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