The Pradhan Mantri Mudra Yojana (PMMY) has completed 10 years on April 08,2025. The scheme has been instrumental in transforming the MSME financing landscape in India. Over the past decade, PMMY has played a vital role in terms of access to credit for micro enterprises. The scheme’s tiered structure—Shishu, Kishore, and Tarun— has enabled the Bank to disburse affordable, collateral-free loans to entrepreneurs.
PMMY has significantly expanded our bank’s outreach to the micro-enterprise segment. During the first five years of the scheme, we disbursed credit facilities aggregating to Rs. 18,923 crores to 11,59,636 borrowers under the scheme. Cumulative disbursements during the 10 years period is Rs. 71,364 crores to 43,65,580 borrowers i.e. growth of around 300%, both in volume as well as in value terms. Credit facilities to women entrepreneurs under the scheme constitute more than 25%.
The recent increase in the loan ceiling to Rs. 20 lakh under Tarun Plus category announced during the 2024 Union Budget, will enable the Bank to support slightly larger micro-enterprises with growth potential.
Apart from contributing to the growth of the economy and GDP of the country, this journey has enabled entrepreneurship and creation of new employment.
The Bank supported our PMMY borrowers during the COVID-19 pandemic by sanctioning additional credit through Emergency Credit Line Guarantee Scheme – GECL. By granting GECL, the Bank ensured that our PMMY borrowers could tide over the liquidity crunch and sustain their livelihood. Timely support through GECL saved more than 60% PMMY accounts from slipping to NPA.
The Bank has introduced end-to-end digital journey for Mudra loan applicants. Entire journey of the loan i.e. from application to sanction and disbursements is completed online. The Bank is also issuing Mudra Card, to borrowers under the scheme.
As Bank of India is celebrating the 10th anniversary of the launch of PMMY, Bank of India has launched multifaceted campaigns to give wide publicity to the PMMY through social media platforms, Indoor and Outdoor Advertisements through Banners, Standees and digital displays at branches etc. We have also made success stories and reels live on major social media platforms.
Through these efforts, Bank of India is committed to enhance the reach of PMMY and thereby growth of the nation.