10th anniversary of Pradhan Mantri Mudra Yojana &MUDRA

The government of India's Pradhan Mantri Mudra Yojana completed 10 years on 8th April 2025. The Pradhan Mantri Mudra Yojana (PMMY)scheme and the Micro Units Development & Refinance Agency Ltd (MUDRA) were launched by Prime Minister Narendra Modi on 8th April 2015.

The aim of the scheme and MUDRA was to provide easy loan access to the small and micro business enterprises in the country, with special focus on the weaker section of the society.

MUDRA Loan 

Under the Pradhan Mantri Mudra Yojana, loans are provided to non-corporate, non-farm small/micro enterprises. These loans are called MUDRA loans.

The loans are provided by the Reserve Bank of India-regulated Commercial Banks, Regional Rural Banks (RRBs), Small Finance Banks, Micro Financial Institutions (MFIs), and Non-Banking Financial Companies (NBFCs).

Initially, the Mudra loan was provided for manufacturing, services, retail, and agriculture and allied activities. Later the scope was extended to include loans for allied income generation.

Categories of MUDRA loan

There are four categories of loans designed to help business enterprises during their various growth stages.

Sishu Stage 

• Maximum loan up to Rs 50,000.
• The loan is designed for startups and new business ventures, for first-time entrepreneurs.

Kishore Stage 

•  Loans of more than Rs 50,000 and up to Rs 5 lakhs.
• It is designed to support enterprises that want to expand their business.

Tarun Stage

• Loans of more than Rs 5 lakhs and up to Rs 10 lakhs.
• It is designed to meet the higher funding needs of an established business enterprise.

Tarun Plus 

• It was introduced recently. 
• Loans of more than Rs 10 lakhs and up to Rs 20 lakhs.
• The loan is provided to those entrepreneurs who have successfully repaid previous loans under the ‘Tarun’ category.
• The category is designed to cater to the financial needs of micro-enterprises.

Overdraft under PMJDY comes under Mudra Loan 

• Overdrafts up to Rs 10,000  provided under the Pradhan Mantri Jan Dhan Yojana (PMJDY) are also considered a MUDRA loan. 

Achievements of MUDRA

• Over 52 crore loans worth more than 32 lakh crore rupees have been sanctioned to date.
• Around half of the Mudra beneficiaries belong to SC, ST, and OBC Communities, and over 70% of the beneficiaries are women.

About MUDRA 

The Micro Units Development & Refinance Agency Ltd (MUDRA) ws set up as a company in 2015 under the Companies Act 2013.

It is a subsidiary of the Small Industries Development Bank of India (SIDBI).

It is registered as an NBFC with the Reserve Bank of India.

Headquarters: Mumbai

Function of MUDRA

• It is responsible for monitoring the Pradhan Mantri Mudra Yojana.
• It is responsible for developing and refinancing all Micro-enterprises sectors.
• It provides refinancing facilities to the micro-enterprise sector in the country.