The Pradhan Mantri Mudra Yojana (PMMY) is helping build a stronger and more financially active community of women entrepreneurs in India.
According to Aditya Sinha, Officer on Special Duty (OSD), Research Division, Prime Minister’s Economic Advisory Council, this scheme is playing a key role in encouraging women-led economic growth across the country.
Collateral-Free Loans for Small Businesses
PMMY provides loans to micro and nano enterprises without any collateral.
Sinha highlighted that PMMY is more than just a loan scheme – it sees the poor, especially women, as entrepreneurs, not just as welfare beneficiaries.
He explained that no collateral is needed under this scheme, which reduces costs and makes it easier for people to access loans through non-banking financial institutions (NBFCs) and microfinance organizations.
From Housework to Business Ownership
Before PMMY, many women were involved only in household work or seasonal labor. Now, they are starting their own small businesses such as:
Tailoring units
Beauty parlors
Food stalls
Agro-processing ventures
Retail shops
Sinha called this change “deeply social”, saying it has improved women’s purchasing power and given them greater control over household finances.
PMMY Loan Categories
Launched in 2015, PMMY offers small loans up to ₹20 lakh to help micro and small enterprises grow. The loan categories are:
Shishu: Up to ₹50,000
Kishor: ₹50,001 to ₹5 lakh
Tarun: ₹5,00,001 to ₹10 lakh
Tarun Plus: ₹10 lakh to ₹20 lakh
68% of PMMY Beneficiaries Are Women
Government data shows that around 68% of the scheme’s beneficiaries are women.
Between FY2016 and FY2025, the compound annual growth rate (CAGR) of loan disbursal per woman under PMMY was 13%, reaching ₹62,679.
During the same period, women’s savings and deposits also grew at a CAGR of 14%, which indicates not just access to loans but also an improvement in financial awareness and behavior among women.
