New Delhi

The Pradhan Mantri MUDRA Yojana (PMMY) launched by Prime Minister Narendra Modi on April 8, 2015, is marking 11 years of success in strengthening India's grassroots entrepreneurs.

This initiative has been designed to bridge the gap in financial accessibility, offering streamlined, easy collateral-free loans up to Rs 20 lakh to support small-scale business ventures for non-corporate and non-farm income-generating activities.

Micro, Small, and Medium Enterprises (MSMEs) serve as the backbone of the industrial ecosystem, acting as essential partners to major corporations and driving balanced economic development. By diversifying their reach into new industries and refining their output, these enterprises are effectively addressing the needs of both local consumers and global markets.

The landscape of business financing has evolved rapidly, with digital innovations and data analytics making it easier for smaller firms to secure capital. A cornerstone of this progress is PMMY, a strategic government initiative famously characterized by its mission to "Fund the Unfunded," ensuring that credit reaches those traditionally overlooked by formal banking systems.

On the occasion of the 11th successful year of PMMY, Union Minister for Finance & Corporate Affairs Nirmala Sitharaman said, "In the last decade, India witnessed a silent transformation where crores of ordinary citizens stepped into entrepreneurship with newfound confidence and agency. At its heart lies an initiative launched on April 08, 2015, by the Prime Minister, the Pradhan Mantri MUDRA Yojana (PMMY), which, by design, focused on "funding the unfunded".

"Eleven years later, the scheme has been instrumental in reshaping the credit landscape for MSMEs and countless individual entrepreneurs in the country. These were those entrepreneurs who were hitherto excluded from the formal banking system. With this initiative, entrepreneurship has become truly democratised by removing the entry barriers to credit", Nirmala Sitharaman added.

Highlighting PMMY's role in empowering millions and fulfilling the vision of inclusive growth, Union Minister of Finance remarked, "Cumulatively, more than 57.79 crore loans have been sanctioned, amounting to Rs 40.07 lakh crore of disbursement. Two-thirds of the loans have been sanctioned to women entrepreneurs. Approximately one-fifth of all the loans were extended to first-time entrepreneurs.

"In sheer magnitude, this translates to 12.15 crore loans with an amount of 12 lakh crores extended to new entrepreneurs," she added.

The Union Finance Minister also appreciated the Banks, various Financial Institutions, and stakeholders for bringing the scheme to the common man and making it a resounding success.

"PM MUDRA Yojana will continue to empower entrepreneurs to become active participants in our nation's journey to become Viksit Bharat by 2047", Nirmala Sitharaman said.

On the occasion, Union Minister of State (MoS) for Finance, Pankaj Chaudhary said, "The Pradhan Mantri MUDRA Yojana (PMMY) is one of the most significant initiatives, aimed at promoting micro-entrepreneurship. Financial inclusion is one of the top priorities of the government, as it plays a vital role in achieving inclusive growth. PMMY provides a platform for small entrepreneurs to access loan support from banks, NBFCs, and MFIs as it drives credit inclusion."

"The scheme has provided crucial financial assistance to a vast number of entrepreneurs, helping them set up and operate their businesses and instilling a sense of financial security in them.", MoS said.

READ MORE: Two-time world kickboxing champion Tajamul Islam is an ode to human spirit

The MoS also added, "It has created self-employment opportunities across the country, especially for marginalized sections of society, including Scheduled Castes/Scheduled Tribes, Other Backward Classes (51 per cent of loan beneficiaries), and women (67 per cent of loan beneficiaries)."

Stressing on Mudra's impact the MoS said "The core objective of the MUDRA Yojana is "Funding the Unfunded." The scheme has successfully ended the exploitation of India's small entrepreneurs by informal lenders. In the past 11 years, it has extended over Rs 40 lakh crore through 57.7 crore loans, instilling a new sense of confidence among borrowers."