PM Mudra Yojana has empowered millions: DFS Secretary M. Nagaraju

IANS April 7, 2025 200 views

The Pradhan Mantri Mudra Yojana has transformed financial accessibility for millions of Indians over its first decade. By providing collateral-free loans, the scheme has particularly empowered women, SC/ST, and OBC communities to start businesses. With over 52 crore loans sanctioned and a remarkable 2.21% non-performing asset rate, the program demonstrates remarkable economic potential. The International Monetary Fund has acknowledged Mudra's significant role in formalizing India's economic landscape through entrepreneurship.

"More than 20 per cent of beneficiaries are first-time entrepreneurs" - M. Nagaraju, DFS Secretary
New Delhi, April 7: As the Pradhan Mantri Mudra Yojana (PMMY) completes 10 years on April 8, M. Nagaraju, Secretary, Department of Financial Services (DFS) in the Union Finance Ministry, on Monday said that the scheme has touched a historic milestone of sanctioning over Rs 32.6 lakh crore through more than 52 crore loans.

Key Points

1

Scheme provides collateral-free loans to marginalized communities

2

Nearly 70% of loans benefited women entrepreneurs

3

Low 2.21% NPA demonstrates credit discipline

4

Supports self-employment across rural and urban India

The scheme has significantly contributed to self-employment and entrepreneurship across India, he said.

"The scheme has made a deep impact in the lives of people, especially women, SC/ST, OBC, and those in rural areas who lacked access to collateral and formal credit,” Nagaraju told IANS.

"Many beneficiaries had neither land nor collateral nor any financial track record. Yet, they got support through PM Mudra Yojana and have gone on to start and expand their businesses," he added.

Highlighting the economic empowerment brought in by the scheme, Nagaraju said: "More than 20 per cent of beneficiaries are first-time entrepreneurs. These are people who had never taken a loan from any bank or financial institution before. This is a big transformation."

He added that the scheme’s strong recovery rate, with NPAs at just 2.21 per cent as of last month, reflects the credit discipline among borrowers.

"Despite being collateral-free, the repayment record is impressive. This shows people are using Mudra loans wisely and for productive purposes," Nagaraju told IANS.

To further strengthen the ecosystem, DFS has introduced new schemes like ‘Tarun Plus’, under which eligible individuals can now avail loans up to Rs 20 lakh without any guarantee.

"We have also brought ‘Mudra Homestay’ into the fold to support tourism-related ventures under the scheme," he added.

Data from the Finance Ministry reveals that nearly 70 per cent of Mudra loans have been availed by women entrepreneurs which highlighted the role the scheme has played in promoting financial inclusion and gender equality.

In states like Jammu & Kashmir alone, over 20.7 lakh loans have been sanctioned, showing the widespread outreach of the scheme.

The International Monetary Fund (IMF) has also praised the scheme in its 2024 report, stating that Mudra has boosted the number of women-owned MSMEs and contributed to the formalisation of the Indian economy through self-employment.

Reader Comments

P
Priya K.
This is such an inspiring initiative! My cousin in Jaipur started her tailoring business with a Mudra loan and now employs 3 other women. More power to schemes that support grassroots entrepreneurship 👏
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Rahul S.
While I appreciate the scheme's intent, I wish there was more transparency about the actual business success rates. Getting a loan is one thing, but sustaining a business is another challenge altogether.
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Anita M.
70% loans to women entrepreneurs! That's amazing progress for financial inclusion. My mother-in-law used this to expand her pickle business - never thought she'd be running an enterprise at 55!
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Vikram J.
The low NPA rate is impressive. Shows people value and respect this opportunity. Hope the new Tarun Plus scheme helps more young entrepreneurs like me who need slightly bigger capital.
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Sunita R.
Mudra Homestay is such a smart addition! Tourism can really boost rural economies. My village in Himachal would benefit greatly from this - going to share this news with our panchayat.
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Karan P.
The article mentions J&K numbers - would love to see more regional breakdowns. Which states have highest uptake? Are there any gaps in certain regions that need addressing?

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Tags:
Mudra Yojana PM Modi Financial Inclusion Women Entrepreneurs MSME Development M. Nagaraju
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