PM MUDRA Yojana Built On People’s Potential, Empowering Indians To Turn Their Dreams Into Businesses: Sitharaman

Finance Minister Nirmala Sitharaman unveiled the Pradhan Mantri MUDRA Yojana during a session with beneficiaries in New Delhi. Sitharaman emphasized that the scheme was built upon the government's confidence in India's entrepreneurial spirit. Under Prime Minister Narendra Modi's leadership, small entrepreneurs gained access to business loans without needing collateral. This initiative has enabled millions of people to start their own businesses, achieve financial independence, and contribute to India's economic expansion.

Sitharaman highlighted that the scheme has facilitated a significant increase in formal credit access for small enterprises across the nation. She mentioned the expansion of banking services to the masses through the Pradhan Mantri Jan Dhan Yojana in 2014, which allowed people to open bank accounts without any minimum balance requirements. Following this, PM MUDRA Yojana was launched on April 8, 2015, with the goal of "funding the unfunded." Over 57 crore loans have been sanctioned under this flagship scheme.

Borrowers who make timely repayments on their MUDRA loans become eligible for larger loan amounts, enhancing their credit history and credibility with banks. Those who have repaid their loans on time have been able to expand their businesses and gain access to regular banking facilities. Since its inception, the scheme has disbursed a cumulative loan value of ₹40.07 lakh crore.

Presently, about 20% of the loans are provided to first-time entrepreneurs, with around 12.15 crore loans worth ₹12 lakh crore being granted, showcasing the scheme's role in nurturing new businesses and promoting financial inclusion throughout India.