Micro and small enterprises employ crores of Indians but were long shut out of formal credit, dependent on moneylenders. The Pradhan Mantri Mudra Yojana (PMMY), launched in 2015, changed that by offering collateral-free loans through banks and NBFCs. Since inception, over 59 crore loans worth about ₹41.7 lakh crore have been sanctioned across the Shishu, Kishor, Tarun and Tarun Plus categories.
MSME Credit · Mudra
MSME Credit · Mudra
Small and micro enterprises are the backbone of Indian jobs, but they long struggled to get bank credit. The Pradhan Mantri Mudra Yojana (2015) provides collateral-free loans — now up to ₹20 lakh — to tiny businesses. Since launch, over 59 crore loans worth about ₹41.7 lakh crore have been sanctioned, about two-thirds of them to women. The counter shows cumulative Mudra loans sanctioned.
~₹41.7 lakh cr
Mudra loans sanctioned
59 crore+
Loans given
68%
Beneficiaries who are women
Mudra loans sanctioned (June 2026)
| Year | Mudra loans (cumulative) |
|---|---|
| 2016 | 1.4 ₹ lakh cr |
| 2017 | 3.2 ₹ lakh cr |
| 2018 | 5.7 ₹ lakh cr |
| 2019 | 8.9 ₹ lakh cr |
| 2020 | 12.3 ₹ lakh cr |
| 2021 | 15.5 ₹ lakh cr |
| 2022 | 18.9 ₹ lakh cr |
| 2023 | 23.5 ₹ lakh cr |
| 2024 | 28.9 ₹ lakh cr |
| 2025 | 33.7 ₹ lakh cr |
| 2026 | 39.5 ₹ lakh cr |
2016
0.0₹ lakh cr
Mudra loans (cumulative)
20162026
Since 2016
Added
+38.1 ₹ lakh cr
2016
1.4 ₹ lakh cr
2026
39.5 ₹ lakh cr
Why it matters Micro-credit lets small vendors, artisans and shopkeepers grow, formalise and create jobs — a key channel for financial inclusion and grassroots entrepreneurship.
- Mudra loans: ~₹41.7 lakh crore sanctioned; 59 crore+ loans (June 2026)
- 68% of Mudra beneficiaries are women
- Source: Ministry of Finance (PMMY)
History
Notable impact
About 68% of Mudra loan accounts have gone to women, and in 2024-25 borrowers from SC, ST and OBC communities held 45.52% of Mudra loan accounts and 31.77% of the amount disbursed (PIB, April 2026), making it a major tool for inclusive entrepreneurship. In 2024 a new Tarun Plus category raised the ceiling to ₹20 lakh for borrowers who had repaid earlier loans, helping small firms grow beyond micro scale.
How it works
MSMEs — the small workshops, shops and firms that employ the most Indians — often can't get bank loans because they lack collateral. PM MUDRA Yojana cracks this by offering collateral-free loans in four categories (Shishu, Kishor, Tarun and Tarun Plus) through banks, with the government guaranteeing part of the risk. Alongside, a simple Udyam online registration formalises small firms, unlocking priority-sector credit, government tenders and other benefits.
Outlook
MUDRA has sanctioned ₹41.7 lakh crore across more than 59 crore loans since 2015 (June 2026), and the top loan limit was doubled to ₹20 lakh in 2024 — a huge push of credit to the smallest businesses. The next step is helping micro-borrowers grow rather than just survive: better handholding, digital and formal credit histories, moving firms up from tiny to small to medium, and keeping bad loans in check as lending scales.
By the numbers
~₹41.7 lakh crore sanctioned; 59 crore+ loans (2015 to June 2026). 68% of beneficiaries are women; SC/ST/OBC: 45.52% of accounts, 31.77% of amount disbursed (2024-25). Ceiling raised to ₹20 lakh (Tarun Plus). Sources: Ministry of Finance (Rajya Sabha answer, July 2026); PIB (11 Years of PMMY, April 2026).
Data current to: 26 June 2026
Source: Ministry of Finance (Department of Financial Services) — cumulative PM Mudra Yojana loans sanctioned (₹ lakh crore). Rajya Sabha answer, July 2026: 59.14 crore loans worth ₹41.71 lakh crore as on 26 June 2026 (linked). Chart: running totals of the year-wise sanctions published by PIB in April 2025 (FY 2015-16 to 2024-25, the last to 21 March 2025), and ₹39.48 lakh crore as on 27 February 2026 from PIB, March 2026. · link