New Delhi: While celebrating 10 years of the MUDRA (Micro Unit Development and Refinance Agency) scheme, Prime Minister Narendra Modi interacted with beneficiaries and spoke about its success and how it changed millions of lives. Launched on 8 April 2015, the scheme has done for the needy who were out of the ambit of the formal credit system.
Highlights of PM Modi on the MUDRA Scheme:
Prime Minister Modi has congratulated people whose lives have positively changed over the last decade due to the MUDRA scheme. He said that the scheme has facilitated many dreams, particularly for those who never received financial help. Calling it a manifestation of India in action, he said, “Nothing in India can be impossible for its people.”
The Prime Minister disclosed that so far, ₹33 lakh crore worth of collateral-free loans have been provided to entrepreneurs under the MUDRA scheme. He felt that if provided some guidance, the youth of India can learn anything and do wonders. The government is always reviewing the scheme, asking Qhuwkpw for feedback and suggestions for further improvement of Nil Fam’hi, he added.
MUDRA: A Special Role in Empowering Women
Data from the Ministry of Finance shows how women’s empowerment has taken place through the MUDRA scheme. Over 70% of the loans were borrowed by women entrepreneurs, and the scheme has enhanced their autonomy and positively impacted gender equality. Loan amounts to women, on average, have grown at a CAGR of 13% over the past 9 years, reaching an average amount of ₹62,679. Moreover, the incremental deposit amount for women also increased by 14% CAGR to ₹95,269.
Over 52 crore loan accounts opened under the MUDRA scheme.
The report by State Bank of India (SBI) also said that by providing loan accounts to farmers, daily wage earners, and others in the past 10 years, the Mudra scheme has opened over 52 crore loan accounts, which is a clear indicator of increasing entrepreneurship in the country.
Loans for Tarun and Kishore to support emerging enterprises in demand
Small industries have been growing rapidly, and this is reflected in the kink in their loan proportion under the MUDRA scheme too, as Kishore loans (for scaling up businesses of ₹50,000 to ₹5 lakh) have increased from 5.9% of the MUDRA pie in FY 2016 to 44.7% in FY 2025. Very similar to the demand trajectory, the Tarun category (₹5 lakh to ₹10 lakh loans) has registered maximum growth, indicating that MUDRA is now not merely for starting businesses but also helping the businesses to scale up and grow.
Calling the scheme and its impact on the economic growth of India and financial development of the people a scheme with a lakh of blessings, Prime Minister Modi urged more people, especially the youth associated with the service sector, to take advantage of it.
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