Prime Minister Narendra Modi on Wednesday said that the Pradhan Mantri Mudra Yojana (PMMY) reflects an economic ethos where opportunities are accessible, initiatives are encouraged, and every dream is given the support to grow.

Taking to social media platform ‘X’, the PM Modi said, “PM Mudra Yojana reflects an economic ethos where opportunities are accessible, initiatives are encouraged and every dream is given the support to grow."

He also shared a post by MyGovIndia, highlighting the scheme’s achievements over the years.

"For 11 years, the Pradhan Mantri Mudra Yojana has acted as an ‘Anjali Mudra’, a dedicated offering to the country’s entrepreneurial energy. By bridging the gap between ambition and credit, it has transformed over 52 crore job seekers into business owners,” the post stated.

According to MyGovIndia, the scheme has redefined access to credit by empowering millions with both the confidence to dream and the means to fulfil those aspirations. By removing barriers and trusting the potential of citizens, it has strengthened the spirit of enterprise across the country.

Highlighting the transformation in business financing, the post noted that the scheme has reshaped access to credit by eliminating collateral requirements, enabling small businesses, and supporting first-time entrepreneurs across India.

It stated that earlier, loans required guarantees that discouraged many aspiring entrepreneurs. Today, under PMMY, collateral-free loans of up to Rs 20 lakh are available, helping individuals start their business journeys with confidence.

The initiative has also addressed concerns around funding first-time founders.

“The belief that new entrepreneurs are too risky has changed significantly. Over 12 crore entrepreneurs have been funded, with more than Rs 12 lakh crore extended to support new business ventures,” the post said.

PMMY offers structured loan categories Shishu, Kishor, Tarun, and Tarun Plus designed to support businesses at different stages of growth, replacing the earlier norm of limited financial support for new enterprises.

The scheme has significantly widened access to credit, with over 56 crore loans sanctioned and more than Rs 40 lakh crore disbursed to support enterprises across sectors.

Women entrepreneurs have emerged as key beneficiaries of the initiative.

“Nearly 65 per cent of Mudra loans have been extended to women, including support for Self-Help Groups through collateral-free loans,” the post added.

The scheme has also reached communities that were historically excluded from formal credit systems. Nearly 49 per cent of loans have been extended to SC, ST, and OBC groups, while over Rs 3.50 lakh crore has been disbursed to more than 6 crore minority borrowers.

Repeat borrowing trends indicate growing trust in the scheme. Entrepreneurs are increasingly returning for higher-value loans, with the share of Kishor category loans rising from 5-6 per cent in 2016 to 40-45 per cent in 2025.

A new generation of first-time entrepreneurs is emerging across India under PMMY. From small shops to local service providers, individuals are turning ideas into sustainable livelihoods, contributing to grassroots economic growth.

The scheme has also helped recognise skill as a form of capital by supporting micro-businesses such as vendors, shopkeepers, and home-based enterprises, enabling them to monetise their abilities.

Furthermore, PMMY has expanded opportunities beyond urban centres, reaching Tier 2, Tier 3, and rural regions. By extending credit access to underserved communities, it is fostering inclusion and driving decentralised development.

MyGovIndia further said that Mudra is strengthening India’s formal economy by bringing informal businesses into the credit ecosystem. The massive expansion of MSME credit supports jobs, production, and decentralised growth.