PM Mudra Yojana Completes 11 Years, Crosses ₹40 Lakh Crore in Disbursements

The Pradhan Mantri Mudra Yojana (PMMY), launched on April 8, 2015 to expand formal credit access for small entrepreneurs, has completed 11 years with cumulative disbursements of more than ₹40.07 lakh crore through 57.79 crore loans, according to the Finance Ministry. The scheme provides collateral-free institutional credit up to ₹20 lakh for non-corporate, non-farm income-generating activities, and has become one of the central pillars of India’s financial inclusion architecture.

Marking the anniversary, Finance Minister Nirmala Sitharaman said the scheme has helped democratise entrepreneurship by bringing millions of previously excluded borrowers into the formal banking system. She said the programme has reshaped the credit landscape for MSMEs and individual entrepreneurs, with about two-thirds of all loans going to women borrowers and around one-fifth extended to first-time entrepreneurs. In volume terms, that translates to roughly 12.15 crore loans worth about ₹12 lakh crore to new entrepreneurs.

The year-wise figures show how sharply the scheme has scaled since inception. PMMY sanctioned 3.49 crore loans worth ₹1.37 lakh crore in 2015-16, while by 2025-26 as of 27 March 2026, it had already sanctioned 4.49 crore loans worth ₹5.65 lakh crore. Over the full 11-year period, the cumulative sanctioned amount reached ₹40.07 lakh crore.

The scheme currently operates through four categories based on enterprise stage and funding need: Shishu for loans up to ₹50,000, Kishor for loans above ₹50,000 and up to ₹5 lakh, Tarun for loans above ₹5 lakh and up to ₹10 lakh, and TarunPlus for loans above ₹10 lakh and up to ₹20 lakh. Category-wise data released by PIB shows Shishu accounts for 74% of loans by number, while Kishor accounts for 43% of the total sanctioned amount, indicating the growing scale of small business credit demand.

The Finance Ministry also highlighted the scheme’s social inclusion dimension. It said 51% of loan beneficiaries belong to OBC communities, while women account for 67% of beneficiaries. Among minority borrowers, disbursements stood at ₹1.33 lakh crore under Shishu, ₹1.54 lakh crore under Kishor, and ₹0.62 lakh crore under Tarun.

As PMMY enters its second decade, the government is presenting it as a long-term instrument for grassroots entrepreneurship, self-employment and credit inclusion. The broader message from the Finance Ministry is that Mudra has evolved from a flagship lending scheme into a major structural channel for expanding formal finance to India’s smallest enterprises.

Reference:

https://www.pib.gov.in/PressReleasePage.aspx?PRID=2249915&reg=3&lang=1