NEW DELHI: Prime Minister Narendra Modi interacted with beneficiaries of the Pradhan Mantri MUDRA Yojana (PMMY) on Tuesday morning, marking 10 years of the flagship scheme that supports micro and small businesses across India. He revealed that over Rs 33 lakh crore in collateral-free loans have been sanctioned under the scheme so far, empowering people to pursue entrepreneurship and become job providers instead of job seekers.
At his residence, PM Modi greeted the beneficiaries stating, “I thank you all for coming to my residence. It is said in our scriptures that when guests come to a house, the house becomes pure, so I welcome you all.”
Speaking during the virtual interaction that started around 9 am, the PM highlighted the transformative impact of PMMY in enabling grassroots entrepreneurship by providing collateral-free loans to small business owners and first-time entrepreneurs.
He praised the woman beneficiaries of the scheme saying, “Most beneficiaries out of 52 crore borrowers are women and interestingly they are most prompt in repayment of their Mudra loans.”
The Prime Minister interacted with several young entrepreneurs and their stories and how they benefitted from the scheme. One of the attendees, Lavkush Mehra from Bhopal described how he established his business in 2021, now earning Rs 50 lakhs. “Earlier, I used to work for someone, was a servant, but you took our guarantee through Mudra loan and today we have become owners. I started my business in 2021 and I approached the bank, they gave me a loan limit of Rs 5 lakh. I was afraid that I am taking such a big loan for the first time and whether I will be able to repay it or not. Today, my Mudra loan has gone up from Rs 5 lakhs to Rs. 9.5 lakhs. And my first-year turnover was Rs 12 lakhs, which has now become more than Rs. 50 lakhs,” he explained. In response, PM Modi said that the Mudra scheme exists “to give courage to the youth of my country to stand on their own feet” and is not for “Modi’s praises”.
Another beneficiary, Poonam Kumari, took the mic and shared her story. Coming from a poor farming background, she spoke of once surviving on a single meal a day, while being visibly emotional. She and her husband decided to start a business with the help of an Rs 8 lakh collateral-free loan under the MUDRA scheme in 2024. They launched a seed business that now earns them up to Rs 60,000 a month, she claimed. “Today I am self-reliant — and it’s because of your scheme, sir,” she told the Prime Minister.
Before the interactions with the beneficiaries, PM had taken to X to highlight the importance of the scheme in a series of posts. “Today, as we mark, #10YearsOfMUDRA, I would like to congratulate all those whose lives have been transformed thanks to this scheme. Over this decade, Mudra Yojana has turned several dreams into reality, empowering people who were previously overlooked with the financial support to shine. It illustrates that for the people of India, nothing is impossible,” he said.
Further pointing at the the demographics of the the beneficiaries, he said, “It is particularly heartening that half of the Mudra beneficiaries belong to SC, ST and OBC Communities, and over 70% of the beneficiaries are women! Every Mudra loan carries with it dignity, self-respect and opportunity. In addition to financial inclusion, this scheme has also ensured social inclusion and economic freedom.”
“In the times to come, our Government will continue focusing on ensuring a robust ecosystem where every aspiring entrepreneur, has access to credit thus giving him or her the confidence and a chance to grow,” the PM added.
According to the Ministry of Finance, 68% of the Mudra Yojana beneficiaries are women, while 50% belong to Scheduled Castes (SC), Scheduled Tribes (ST), and Other Backward Classes (OBC).
Department of Financial Services Secretary M. Nagaraju had earlier emphasized that the initiative was designed for those seeking loans without the burden of providing any guarantee. “The aim was to fund the unfunded — and we’ve succeeded in creating a robust ecosystem of entrepreneurship that reflects in every corner of the country,” he noted.
