In 2017, IMF praised PM Mudra Yojana by saying that it has been successful in enabling women-led businesses to access finance. To complement PMJDY’s focus on unbanked households, the Pradhan Mantri MUDRA Yojana (PMMY) scheme launched in April, 2015, aims to enable access to formal finance for micro, small and medium-sized business by providing collateral-free loans.

Again in 2019 IMF praised the Mudra Yojana and highlighted that Pradhan Mantri Mudra Yojana scheme under the Micro Units Development and Refinance Agency is responsible for developing and refinancing micro enterprises by supporting financial institutions which lend to micro and small business entities engaged in manufacturing, trading and services.

In 2023, IMF said that the PM MUDRA scheme, which extends collateral-free loans with a special focus on women’s entrepreneurship has helped boost the number of women-owned MSMEs, which now stand at more than 2.8 million. 

In 2024 release it said that an enabling policy environment for entrepreneurship through various programs such as the Pradhan Mantri Mudra Yojana is contributing to increased self-employment and formalization through credit.

State Bank of India (SBI) report

A Decade of Audacious Dreams: Bolder, Bigger and Indeed Beautiful

A recent State Bank of India (SBI) report on Mudra highlights how Mudra has transformed entrepreneurship, especially for marginalized groups, women, and micro-businesses.

A Decade of Growth: Shishu to Kishor Loans

In the past 10 years, Mudra has helped open over 52 crore loan accounts, reflecting a huge surge in entrepreneurial activity. Kishor loans (₹50,000 - ₹5 lakh), which support growing businesses, have surged from 5.9% in FY16 to 44.4% in FY25, demonstrating a natural progression from micro to small enterprises. The Tarun category (₹5 lakh - ₹10 lakh) is also gaining traction, proving that Mudra is not just about starting businesses but helping them scale up.

MSME Credit Boom: A Stronger Business Ecosystem

The SBI report highlights a significant rise in credit flow to MSMEs, fueled by Mudra’s impact. MSME lending surged to ₹27.25 lakh crore in FY24 from ₹8.51 lakh crore in FY14 and is projected to cross ₹30 lakh crore in FY25. MSME credit now in FY24 makes up nearly 20% of total bank credit, up from 15.8% in FY14, showcasing its growing role in India's economy. 

This credit expansion has allowed businesses in smaller towns and villages to access financial support that was once unavailable, strengthening India’s self-reliant economy and job creation at the grassroots level.

Financial Inclusion: Empowering Women & Marginalized Groups

Mudra Yojana has deepened financial inclusion, ensuring that entrepreneurship is not limited to a privileged few. The SBI report reveals that 50% of Mudra accounts belong to SC/ST and OBC entrepreneurs, breaking traditional credit barriers.Nearly 68% of all Mudra beneficiaries (loan accounts) are women, highlighting its impact in empowering women-led businesses. 11% of Mudra loan holders belong to minority communities, further ensuring inclusive growth.

In the last nine years (FY25 over FY16), while per woman PMMY disbursement amount increased by a CAGR of 13% to Rs 62,679, the per woman incremental deposits increased by a CAGR of 14% to Rs 95,269 branding PMMY an effective power tool for women empowerment at grass roots level. 

States which have higher share of disbursements to women have significantly shown higher employment creation by women-led MSMEs further reinforcing the efficacy of targeted financial inclusion policies in fostering economic empowerment and labour market participation. 

Bigger Loans, Stronger Businesses

A telescopic view of the total loans sanctioned/disbursed under the scheme shows that since its launch, the Unique Selling Proposition of PMMY has been well received by diversified intended beneficiary classes, raising the economic clout of the bottom. Average ticket size of the loans have nearly tripled; from ₹38,000 in FY16 to ₹72,000 in FY23 to ₹1.02 lakh in FY25; a beacon of rising economies of scale and deepening of market depth or width. Additionally, loan disbursal grew by 36% in FY23, signaling a strong revival of entrepreneurial confidence.

SBI’s Recent Report Praises Expansion of Mudra Loans

The State Bank of India in its recent report highlighted that under Budget 2025 the announcement of expansion of MUDRA loans for homestays has opened a significant opportunity for small businesses in the tourism sector, with potential loans amounting to Rs 1,500 crore under the Shishucategory. The government's initiative aims to boost the local hospitality sector by fostering entrepreneurship in tourism-related businesses.