New Delhi [India]: The Pradhan Mantri Mudra Yojana (PMMY) has significantly contributed to financial independence among marginalized groups, with nearly 50% of the 52 crore PMMY accounts belonging to individuals from Scheduled Castes (SC), Scheduled Tribes (ST), and Other Backward Classes (OBC), according to a report by the State Bank of India (SBI).
The report highlights PMMY’s crucial role in making non-General category entrepreneurs financially self-sufficient. Launched in 2015 by the Prime Minister, the scheme provides transparent, collateral-free, and adequate financial support to small businesses at the grassroots level. Over the years, it has played a transformative role in India’s entrepreneurial landscape.
“The impact of PMMY on bringing the hitherto entrepreneurially devoid social groups is commendable, instilling a true sense of financial independence… close to half of the approx. 52 crore PMMY accounts belong to SC/ST and OBC social classes,” the report stated.
A key highlight of the report is the strong participation of women in the scheme. Approximately 68% of PMMY account holders are women entrepreneurs, showcasing the program’s effectiveness in promoting women’s financial empowerment. Additionally, around 11% of beneficiaries belong to minority communities, further emphasizing the scheme’s role in financial inclusion.
The report also sheds light on the substantial growth in financial support for women entrepreneurs. Over the past nine years (FY25 compared to FY16), the per-woman loan disbursement amount has increased at a compound annual growth rate (CAGR) of 13%, reaching ₹62,679. Meanwhile, incremental deposits by women have grown at a CAGR of 14%, amounting to ₹95,269. This upward trend underscores the scheme’s success in fostering financial stability and business growth among women.
Implemented through the Micro Units Development and Refinancing Agency (MUDRA), PMMY has revolutionized credit accessibility for small and micro-entrepreneurs. By ensuring easy and collateral-free loans, it has enabled millions of aspiring business owners to turn their ideas into successful ventures.
The report acknowledges that PMMY has been a game-changer in empowering marginalized communities to venture into entrepreneurship, creating a ripple effect of financial independence and economic development. As the scheme continues to expand, it is expected to further bolster India’s small business ecosystem, promoting inclusive growth and financial empowerment at the grassroots level.