MUDRA Yojana: Empowering India's Entrepreneurs

The Pradhan Mantri MUDRA Yojana has sanctioned Rs 39.48 lakh crore since its inception, aiding small entrepreneurs. With an NPA of only 2%, it remains one of the largest lending schemes for those lacking collateral. Women entrepreneurs received 65% of the loans in the past three years.

The Pradhan Mantri MUDRA Yojana, since its launch by Prime Minister Narendra Modi on April 8, 2015, has proved transformative, with Union Finance Minister Nirmala Sitharaman announcing that Rs 39.48 lakh crore has been sanctioned. This initiative is pivotal in aiding small entrepreneurs across India, characterized by an impressively low NPA rate of around 2%.

During the Rajya Sabha session, Minister Sitharaman highlighted the significance of PM-MUDRA in empowering those without collateral, noting that it has become one of the largest bank lending schemes. Notably, the loan program is divided into three components: Shishu, Kishor, and Tarun, catering to different scale business needs.

In a written response, Sitharaman emphasized the inclusivity of MUDRA, with over 18.37 crore loans approved from April 2022 to March 2025, 19% targeting new entrepreneurs and 65% secured by women. The measures taken by banks to recover NPAs include a robust follow-up mechanism, emphasizing customer engagement, and settlement strategies to ensure financial stability.

(With inputs from agencies.)