As the Pradhan Mantri Mudra Yojana (PMMY) completed 11 years, Prime Minister Narendra Modi said the scheme has played a crucial role in promoting self-employment among the youth
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NEW DELHI — As the Pradhan Mantri Mudra Yojana (PMMY) completed 11 years, Prime Minister Narendra Modi on Wednesday said the scheme has played a crucial role in promoting self-employment among the youth.
Taking to social media platform X, PM Modi said, “Launched exactly 11 years ago today, the Pradhan Mantri Mudra Yojana has proven to be immensely helpful in fostering self-employment among the youth. The success of this scheme demonstrates that, given the right opportunities, an individual can not only become self-reliant but also contribute to the progress of the nation."
The PMMY was launched on April 8, 2015, with the aim of providing collateral-free credit of up to Rs 20 lakh through Member Lending Institutions, including Scheduled Commercial Banks, Non-Banking Financial Companies, and Micro Finance Institutions.
Under the scheme, any eligible individual with a viable business plan for a small enterprise can avail loans for income-generating activities across manufacturing, trading, and service sectors, including those allied to agriculture. The loans are categorised into four segments: Shishu (loans up to Rs 50,000), Kishor (loans above Rs 50,000 and up to Rs 5 lakh), Tarun (loans above Rs 5 lakh and up to Rs 10 lakh), and Tarun Plus (loans above Rs 10 lakh and up to Rs 20 lakh).
The scheme has significantly supported small businesses, handicrafts, traditional enterprises, and agriculture-allied activities, many of which are key sources of income for rural households.
Women entrepreneurs, in particular, have benefited from the initiative, as it provides access to credit without the need for collateral or an extensive credit history.
To further incentivise successful borrowers, the government introduced the ‘Tarun Plus’ category in 2024-25. This category offers collateral-free loans of up to Rs 20 lakh to entrepreneurs who have previously availed and successfully repaid loans under the Tarun category.
Additionally, the government has taken several measures to simplify the loan application process and ensure timely disbursal. Platforms such as the Jan Samarth Portal have been launched, enabling applicants to access multiple credit-linked schemes through a streamlined and user-friendly process.