Rs 33 lakh crore sanctioned in collateral-free loans under Pradhan Mantri Mudra Yojana: Modi
The PMMY scheme was launched by Prime Minister Modi on April 8, 2015. It aimed with an objective of funding the unfunded to provide collateral-free institutional credit through member lending institutions
New Delhi: Prime Minister Narendra Modi on Tuesday revealed that over Rs 33 lakh crore in collateral-free loans have been sanctioned under the Pradhan Mantri Mudra Yojana (PMMY) so far, empowering people to pursue entrepreneurship and become job providers instead of job seekers. He also highlighted that the transformative impact of PMMY is enabling grassroots entrepreneurship by providing collateral-free loans to small business owners and first-time entrepreneurs. His statement came while interacting with beneficiaries of the PMMY, marking 10 years of the flagship scheme that supports micro and small businesses across India.
The PMMY scheme was launched by Prime Minister Modi on April 8, 2015. It aimed with an objective of funding the unfunded to provide collateral-free institutional credit through member lending institutions. Modi also urged individuals to inspire and support at least five to ten others, fostering confidence and self-reliance among them. “Over 52 crore loans have been disbursed under the scheme, a monumental achievement unparalleled globally,” he said.
In the Mudra scheme, the highest number of women have come forward. Women have applied for the most loans, received the most loans, and are also the fastest to repay them. “It is particularly heartening that half of the Mudra beneficiaries belong to SC, ST and OBC communities, and over 70 per cent of the beneficiaries are women. Every Mudra loan carries with it dignity, self-respect and opportunity. In addition to financial inclusion, this scheme has also ensured social inclusion and economic freedom,” the prime minister said.
Expressing his trust in the nation’s talented youth who have utilised the funds effectively to generate employment and stimulate the economy, Modi said that in last 10 years, the prime minister also said Rs 33 lakh crore has been disbursed to the citizens without the need for guarantees and this amount is unprecedented and surpasses any financial support extended to wealthy individuals collectively.
With the remarkable confidence displayed by the government in expanding the scope of Mudra loans, which initially ranged from Rs 50,000 to Rs 5 lakh, to now reaching Rs 20 lakh, the prime minister also noted that this expansion reflects the trust placed in the entrepreneurial spirit and capabilities of India's citizens, which has strengthened through the successful implementation of the scheme. “The beneficiaries that the government would review the scheme and take steps to further improve it,” he assured.
Modi said that job creation through Mudra Yojana has significantly contributed to economic growth and the earnings of common citizens have increased, enabling them to improve their living standards and invest in education for their children. “It has ushered in a significant shift in societal attitudes towards entrepreneurship. He underlined that the scheme has empowered women by not only offering financial assistance but also creating opportunities for them to lead and grow their businesses,” he said.
Speaking on this occasion, finance minister Nirmala Sitharaman also said, “with over Rs.33.65 lakh crore sanctioned to more than 52 crore Mudra loan accounts, the scheme has proved to be an important milestone in giving wings to the aspirations of crores of entrepreneurs, particularly those belonging to marginal sections of society.”
Since 2015, the finance minister said that over Rs 11.58 lakh crore worth of Mudra loans have been sanctioned to various marginalised communities belonging to scheduled castes, scheduled tribes and OBCs realising PM's mantra of ‘Sabka Saath, Sabka Vikas, Sabka Vishwas and Sabka Prayaas’. “In line with the Budget 2024-25 announcement, the introduction of the Tarun-Plus category last year, with an increased loan limit of Rs 20 lakh, will further help thriving entrepreneurs expand and unlock their full potential,” she added.