10 Years of Mudra Yojana: How It Empowered Small Businesses?

Ten years ago, if you had walked into a small town kirana shop or met a first-generation entrepreneur trying to set up a tailoring unit, chances are they’d tell you the same struggle—money was a barrier. A good idea, sheer grit, and the willingness to work hard wasn’t always enough. The missing link? Access to formal credit.

Then came April 8, 2015.

With the launch of Pradhan Mantri Mudra Yojana (PMMY), Prime Minister Narendra Modi changed the game for millions of such aspiring entrepreneurs across India. Rooted in the mission of “Funding the Unfunded”, the scheme turned into a nationwide movement to democratize credit, fuel self-employment, and ignite India’s grassroots entrepreneurial engine.

Today, as the scheme completes 10 transformative years, it tells a compelling story—not of big boardrooms or billion-dollar startups, but of chai vendors, beauty parlour owners, weavers, local manufacturers, and kirana store entrepreneurs who dared to dream and found support in Mudra.

10 Years of Mudra Yojana

Since its inception, the PMMY has disbursed a staggering ₹33.65 lakh crore across 52.37 crore loan accounts, reflecting not just the scale of the initiative, but the trust that entrepreneurs from every nook and corner of India have placed in it.

Union Finance Minister Nirmala Sitharaman, on the occasion of the scheme’s 10th anniversary, called PMMY a “game-changer” for grassroots entrepreneurship. “It has empowered hardworking micro-enterprises and first-generation entrepreneurs, truly reflecting the spirit of ‘Sabka Saath, Sabka Vikas, Sabka Vishwas, Sabka Prayaas’,” she said.

From Shishu to Tarun Plus: A Credit Ladder for Every Dream

One of the PMMY’s strengths lies in how it segments loans based on the stage of an entrepreneur’s journey:

• Shishu: Up to ₹50,000 for budding entrepreneurs starting their first venture

• Kishor: ₹50,000 to ₹5 lakh for growing businesses

• Tarun: ₹5 lakh to ₹10 lakh for established enterprises

• Tarun Plus (New!): ₹10 lakh to ₹20 lakh for proven borrowers ready to scale further

The introduction of the Tarun Plus category, effective from October 24, 2024, is a timely move. It enables successful entrepreneurs who’ve already repaid Tarun loans to move up the credit chain without switching systems. This new tier is supported by the Credit Guarantee Fund for Micro Units (CGFMU), ensuring confidence for both lenders and borrowers.

Women Leading the Charge—Breaking Barriers, Building Businesses

If there’s one headline that defines the success of PMMY, it’s this: 68% of all Mudra loan accounts belong to women.

That’s not just a number—it’s a social transformation.

From beauty parlours in Bihar to food stalls in Kerala, and tailoring units in Tamil Nadu to handicrafts in Rajasthan, women have taken the Mudra opportunity and used it to drive real change in their communities and homes.

Finance Minister Sitharaman emphasized this, stating, “The scheme has not only boosted women’s entrepreneurship but also created self-employment opportunities across India’s rural and urban regions.”

Inclusive Financing: SC, ST, OBC and Minority Entrepreneurs Rise

PMMY’s inclusivity is not limited to gender. The scheme has extended ₹11.58 lakh crore worth of loans to beneficiaries from Scheduled Castes, Scheduled Tribes, and Other Backward Classes—communities often left behind in the formal financial system.

Additionally, over ₹3 lakh crore has been disbursed to minority borrowers across the Shishu, Kishor, and Tarun categories.

This reflects the government’s sustained push toward ensuring that no entrepreneur—regardless of their background—is left out of India’s growth story.

Numbers that Speak Volumes: As of March 21, 2025

These numbers aren’t just statistics—they represent real people and real businesses. They are the paan shops, mobile repair kiosks, local cafés, handicraft outlets, and home-based ventures that now have a place in India’s thriving micro-economy.

Technology + Trust: The Multi-Stakeholder Model That Works

Minister of State for Finance Pankaj Chaudhary emphasized the scheme’s global relevance. “It has ended the exploitation of small entrepreneurs by informal lenders,” he said. By using technology and a multi-stakeholder approach—including banks, NBFCs, and MFIs—the PMMY has been able to ensure timely disbursals and wide reach.

What’s more, in 2016, the government established the Credit Guarantee Fund for Micro Units (CGFMU), giving much-needed confidence to financial institutions. And during the COVID-19 crisis, the Aatma Nirbhar Bharat Abhiyan supported Shishu borrowers with a 2% interest subvention, helping many small businesses stay afloat.

From Local to National: MSMEs Find a Springboard

The PMMY has done more than fund businesses—it has helped Micro, Small, and Medium Enterprises (MSMEs) become robust players in India’s industrial ecosystem. These small units now serve both domestic and global markets, providing services, manufacturing components, and often filling critical gaps in large-scale supply chains.

Whether it’s an entrepreneur in Coimbatore producing spare parts or a homestay operator in Himachal leveraging digital platforms, Mudra has become their launchpad.

What Lies Ahead: Towards a Developed India by 2047

As India aspires to become a developed economy by 2047, financial inclusion will remain a pillar of that journey. The PMMY’s focus on “Banking the Unbanked, Securing the Unsecured, and Funding the Unfunded” is more relevant than ever.

With evolving credit frameworks, digital transformation in lending, and enhanced institutional support, the next chapter of PMMY looks promising.

The Mudra story is not just a government success—it’s a people’s success.

It’s the story of Sarla Devi, who opened her own tailoring shop and hired two other women in her village. It’s about Mohammed Salman, a mobile repair technician in UP who now runs a full-fledged electronics store. And it’s about the millions of unsung heroes across Bharat who never made headlines, but built something of their own—with hope, hard work, and a Mudra loan.

In a world where we often celebrate unicorns, let us also pause to celebrate the “real cornermen of India’s economy”—its micro-entrepreneurs. And for many of them, it all began with a small but powerful step: a Mudra loan.