Key Points
Mudra Scheme provides collateral-free loans to marginalized entrepreneurs
68% account holders are women across different social categories
Loan disbursements for women grew 13% annually since 2016
Program supports financial inclusion at grassroots level
The report further emphasized that PMMY has become a crucial tool in making non-General category entrepreneurs financially self-sufficient. Launched in 2015 by the Prime Minister, the scheme aims to provide transparent, collateral-free, and adequate financial support to small businesses at the grassroots level.
Over the years, it has played a pivotal role in transforming the entrepreneurial landscape of the country.
The report said, "The impact of PMMY on bringing the hitherto entrepreneurially devoid social groups is commendable, instilling a true sense of financial independence... close to half of the approx. 52 crore PMMY accounts belongs to SC/ST and OBC social classes"
One of the key takeaways from the report is the remarkable participation of women in the scheme. Approximately 68 per cent of the total PMMY account holders are women entrepreneurs, reflecting the program's effectiveness in empowering women economically.
Additionally, around 11 per cent of the beneficiaries belong to minority communities, further strengthening the scheme's impact on financial inclusion.
The report also highlighted the substantial growth in financial support for women entrepreneurs under PMMY. Over the past nine years (FY25 compared to FY16), the per-woman loan disbursement amount has grown at a compound annual growth rate (CAGR) of 13 per cent, reaching Rs 62,679.
Simultaneously, the incremental deposits by women have increased at a CAGR of 14 per cent, amounting to Rs 95,269. This trend showcases the scheme's success in fostering financial stability and growth among women borrowers.
PMMY, implemented through the Micro Units Development and Refinancing Agency (MUDRA), has revolutionized credit accessibility for small and micro-entrepreneurs.
By ensuring easy and collateral-free loans, it has provided millions of aspiring business owners with the financial support needed to turn their ideas into successful ventures.
The report acknowledges that PMMY has been a transformative force in enabling marginalized communities to step into entrepreneurship, creating a ripple effect of financial independence and economic development.
As the scheme continues to expand, it is expected to further strengthen India's small business ecosystem, fostering inclusive growth and financial empowerment at the grassroots level.
