Last week marked the 10th anniversary of Pradhan Mantri Mudra Yojana (PMMY), launched under the Micro Units Development and Refinance Agency (MUDRA) programme, with the aim of funding unfunded micro-enterprises and small businesses.

By removing the hassle of collateral requirements and simplifying institutional access, MUDRA has empowered a new era of grassroots’ entrepreneurship.

Access to institutional credit has been upped to Rs 20 lakh and the scheme has democratised finance for marginal entrepreneurs, especially in rural and semi-urban regions. Over 52 crore loans amounting to Rs 33 lakh crore have been sanctioned since inception, with Tamil Nadu, Uttar Pradesh, and Karnataka leading in total disbursals. This completely negates claims that southern states don’t benefit from the Modi government’s welfare schemes.

Loan sizes have grown significantly by 168%—from an average of Rs 38,117 in FY16 to Rs 1.02 lakh in FY25, highlighting scalability and growing business confidence. Women comprise 68% of the PMMY beneficiaries, with per woman disbursements growing by 174% from Rs 22,872 in FY16 to Rs 62,679 in FY25.

Financial inclusion among socially marginalised groups is also evident—50% of Mudra accounts are held by SC, ST, and OBC entrepreneurs, while 11% belong to minorities. The share of Kishor loans rose from 5.9% in FY16 to 44.7% in FY25, indicating a shift from micro to small-scale businesses.

Data reveal that Micro, Small, and Medium Enterprises’ (MSMEs) lending rose by 220% from Rs 8.51 lakh crore in FY14 to Rs 27.25 lakh crore in FY24 and is expected to cross Rs 30 lakh crore in FY25, reflecting the PMMY’s role in fostering a robust, self-reliant economy. Recognised by the International Monetary Fund (IMF) for its sweeping reach and seamless execution, MUDRA continues to serve as a cornerstone for inclusive growth and job creation in India.

A remarkable MUDRA story is that of an entrepreneur whose business venture, K9 World, provides all types of pet supplies and medicines. After receiving a Mudra loan, K9 started a pet boarding facility, so that whoever is........

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