Pradhan Mantri MUDRA Yojana (PMMY) completed 11 years on 8 April 2026 since its launch on 8 April 2015 with the vision of “Funding the Unfunded.” The scheme has disbursed loans worth Rs 40.07 lakh crore across 57 crore+ accounts as of 27 March 2026.
Over the past decade, PMMY has evolved into a powerful instrument of empowerment and aspiration. It has strengthened grassroots entrepreneurship, deepened financial inclusion, and supported sustained growth of India’s local economies.
Three-tier institutional structure
PMMY operates through a three-tier institutional structure comprising the:
| Micro Units Development and Refinance Agency Ltd. (MUDRA) | Acts as a refinancing agency Provides financial support to lending institutions for onward lending |
| Member Lending Institutions (MLIs) | Includes banks, microfinance institutions, and NBFCs Extends loans directly to borrowers |
| Beneficiaries (Borrowers) | Receive loans for income-generating activities Includes micro units in manufacturing, processing, trading, services, and allied agriculture They access collateral-free loans to support income generation activities, sustain business operations, and expand their enterprises |
This framework enables seamless flow of credit from formal financial institutions to micro enterprises through an intermediary-driven model.
PMMY Coverage
- Mudra loans are extended for a wide range of activities that promote income generation and employment creation. These loans are primarily provided for:
- Business loan for vendors, traders, shopkeepers and other service sector activities, such as community, social & personal services, food products, textiles etc.
- Working capital loans through MUDRA cards
- Equipment finance for micro units such as purchase of necessary machinery, equipment etc.
- Transport vehicle loans for commercial use only such as auto rickshaws, small goods transport vehicles, 3 wheelers, e-rickshaws etc.
- Loans for agri-allied non-farm income generating activities such as pisciculture, bee keeping, poultry, livestock-rearing, grading, sorting, aggregation agro-industries, dairy, fishery, agri-clinics and agri-business centres, food & agro-processing, etc.
MUDRA Loan Categories
Loans under PMMY are classified into four distinct categories namely – Shishu, Kishor, Tarun and Tarun Plus. The categorization caters to different stages of growth and financial needs of the enterprises.
| Shishu | Extends loan up to ₹50,000 for very small/early-stage businesses Supports new entrepreneurs, small retail, repair services, etc. Accessible even without credit history or collateral Promotes inclusion of marginalised entrepreneurs |
| Kishor | Extend loans above ₹50,000 and up to ₹5 lakhs for new and existing enterprises Supports stabilisation, working capital, and modest expansion |
| Tarun | Extend loan above ₹5 lakh and up to ₹10 lakh for growing enterprises Supports scaling up operations, equipment investment, and capacity expansion |
| Tarun Plus | Extend loan above ₹10 lakh and up to ₹20 lakh Introduced in 2024 for borrowers who successfully repaid Tarun loans Requires stable business track record Supports higher-level expansion and enterprise growth |
Performance of PM MUDRA Yojana
- As of 27th March 2026, the scheme has disbursed loans worth ₹40.07 lakh crore with over 57 crore accounts.
- Besides, 12 crore+ accounts belong to new entrepreneurs- highlighting PMMY’s role in bringing them into the formal financial system.
- Among all states: Uttar Pradeshrecorded the highest loan disbursement at ₹58,111 crore, followed by Bihar with ₹54,064 crore, Maharashtra ranked third with ₹50,762 crore.
- Women borrowersaccounted for 59.81% of the total number of loan accounts, with total share of 37.45% in disbursed amount.
- New entrepreneursconstituted 21% of total loan accounts and accounted for a 30.09% share of the total disbursed amount.
- Cumulative share of SC, ST, and OBC categoriesstood at 45.52% in terms of loan accounts and 31.77% in terms of the total disbursed amount.