MUDRA Yojana: Empowering Women Entrepreneurs

3 Min Read


The Pradhan Mantri MUDRA Yojana (PMMY), an initiative by the Indian government, has catalyzed the growth of women entrepreneurship in the country. Finance Minister Nirmala Sitharaman, in her Interim Budget speech, highlighted the success of the scheme, revealing that 30 crore MUDRA loans have been disbursed to women entrepreneurs.

Overview of PMMY

PMMY, launched in 2015, provides loans up to Rs 10 lakh to non-corporate, non-farm micro and small enterprises. These loans, known as MUDRA loans, are disbursed through commercial banks, regional rural banks, small finance banks, microfinance institutions, and non-banking financial companies.

The scheme offers three loan products: ‘Shishu’, ‘Kishore’, and ‘Tarun’, designed to cater to different stages of entrepreneurial development. ‘Shishu’ loans range from Rs 50,000 to Rs 5 lakh, ‘Kishore’ loans from Rs 5,001 to Rs 10 lakh, and ‘Tarun’ loans extend from Rs 10 lakh to Rs 50 lakh.

Empowerment through Risk Mitigation

One of the key features of MUDRA loans is their lack of collateral requirement. This has significantly reduced the barriers to entry for women entrepreneurs who may lack traditional assets to secure loans. By removing this hurdle, the scheme has empowered women to launch and grow their businesses.

Growth and Impact

Since its inception, PMMY has disbursed loans worth approximately 13 lakh crore rupees in 2015-2016. By 2022-2023, this amount had surged to 45 lakh crore rupees, indicating the scheme’s growing popularity and impact on the micro and small enterprise sector.

Leadership and Recognition

Shri Sivasubramanian Ramann currently serves as the Chairman of MUDRA. The scheme has received widespread recognition for its role in promoting financial inclusion and empowering women entrepreneurs.


The MUDRA Yojana has emerged as a transformative initiative, providing access to capital and fostering the entrepreneurial spirit among women in India. The scheme’s success has contributed to the country’s economic growth and highlighted the vital role of women in the nation’s entrepreneurial ecosystem.


  • Who is eligible for MUDRA loans? Non-corporate, non-farm micro and small enterprises, including women entrepreneurs.
  • What is the loan amount range? Rs 50,000 to Rs 10 lakh.
  • Do MUDRA loans require collateral? No, these loans are collateral-free.
  • Who disburses MUDRA loans? Commercial banks, regional rural banks, small finance banks, microfinance institutions, and non-banking financial companies.

Author: Emily Carter

Credit and Copyright: OMG I Yoga

Share This Article