The Pradhan Mantri Mudra Yojana (PMMY) has cumulatively disbursed over ₹30 lakh crore to more than 50 crore small borrowers since its launch in April 2015, cementing its position as India’s largest micro-enterprise financing programme. The milestone coincides with the scheme’s eleventh anniversary, with government data showing a significant shift toward women entrepreneurs and first-time borrowers in recent years.

New Delhi, April 2026 — The Union Finance Ministry on Wednesday released fresh data showing that Mudra loan disbursements have accelerated sharply in the current fiscal year, with nearly ₹4.5 lakh crore sanctioned to micro and small enterprises between April 2025 and March 2026 alone.

What Has Mudra Yojana Achieved in Eleven Years?

Launched on 8 April 2015, the collateral-free lending scheme was designed to fund the “unfunded” — street vendors, small shopkeepers, and artisans who lacked access to formal credit. Government figures indicate that 68 percent of all Mudra borrowers have been women, while SC/ST and OBC communities account for over 50 percent of beneficiaries. The scheme operates through three categories: Shishu (loans up to ₹50,000), Kishore (₹50,000 to ₹5 lakh), and Tarun (₹5 lakh to ₹10 lakh), with Shishu loans comprising nearly 80 percent of all accounts.

Why Are Economists Watching Default Rates Closely?

While the scheme has expanded credit access dramatically, the Reserve Bank of India flagged rising non-performing assets in the Mudra portfolio in its latest Financial Stability Report. NPA rates in the Shishu category touched 4.8 percent in FY2025, higher than the banking sector average for retail loans. Economists argue that better borrower education and post-disbursement monitoring could reduce defaults without restricting credit flow to genuine entrepreneurs.

• Total disbursements since 2015: Over ₹30 lakh crore
• Number of loan accounts: More than 50 crore
• Women beneficiaries: 68 percent of total borrowers
• Most popular category: Shishu loans (up to ₹50,000)
• FY2026 disbursement: Approximately ₹4.5 lakh crore

How Has the Scheme Evolved Over the Years?

The government has progressively digitised the application process through the Udyamimitra portal, reducing processing time from weeks to under 72 hours in many cases. In 2024, the Finance Ministry introduced mandatory credit counselling for first-time Tarun borrowers to improve repayment discipline. State Bank of India, the largest Mudra lender, has also integrated AI-based credit scoring for faster approvals in rural branches.

What Happens Next?

The Finance Ministry is expected to announce an enhanced Mudra 2.0 framework in the upcoming Union Budget, potentially raising the Tarun loan ceiling to ₹20 lakh to support scaling micro-enterprises. Policy experts suggest that linking Mudra accounts with the upcoming National Credit Registry could improve risk assessment and reduce defaults. With state elections due in five states this year, the scheme’s reach among first-generation entrepreneurs is likely to feature prominently in political discourse.