New Delhi: The Pradhan Mantri Mudra Yojana (PMMY) is significantly contributing 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 SBI report highlights PMMY’s role as a crucial tool in enabling financial self-sufficiency among non-General category entrepreneurs. Launched in 2015 by Prime Minister Narendra Modi, the scheme aims to provide collateral-free, transparent, and adequate financial assistance to small businesses at the grassroots level.
PMMY has played a transformative role in reshaping the entrepreneurial landscape of the country by providing easier access to credit for small and micro-entrepreneurs. The report lauds the scheme’s effectiveness in bringing previously underrepresented social groups into the business ecosystem, fostering a culture of financial independence.
“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 approximately 52 crore PMMY accounts belong to SC/ST and OBC social classes,” the report states.
Another key finding of the report is the significant participation of women in the scheme. Approximately 68% of the total PMMY account holders are women entrepreneurs, showcasing the program’s success in empowering women economically.
Financial support for women under PMMY has grown remarkably over the past nine years. The report notes that per-woman loan disbursement has grown at a compound annual growth rate (CAGR) of 13%, reaching ₹62,679, while incremental deposits by women have increased at a CAGR of 14%, amounting to ₹95,269. These figures indicate an improvement in financial stability and independence among women borrowers.
PMMY’s inclusivity extends beyond caste and gender. Around 11% of the beneficiaries belong to minority communities, further strengthening financial inclusion and providing diverse social groups with opportunities for economic growth.
Implemented through the Micro Units Development and Refinancing Agency (MUDRA), PMMY has revolutionized credit accessibility for aspiring entrepreneurs. By offering easy and collateral-free loans, the scheme has enabled millions to launch and sustain their businesses.
