Source: PIB Backgrounder, April 8, 2026
Launched on April 8, 2015 with the slogan “Funding the Unfunded”, the Pradhan Mantri MUDRA Yojana completed 11 years having sanctioned 57.79 crore loans worth Rs 40.07 lakh crore (as of March 27, 2026). Over 12 crore of those accounts belong to first-time entrepreneurs.
The Four Loan Categories
| Category | Slab |
|---|---|
| Shishu | Up to Rs 50,000 |
| Kishor | Above Rs 50,000 to Rs 5 lakh |
| Tarun | Above Rs 5 lakh to Rs 10 lakh |
| Tarun Plus (2024) | Above Rs 10 lakh to Rs 20 lakh, for repeat Tarun borrowers |
Loans are collateral-free up to Rs 20 lakh, for non-corporate, non-farm micro and small enterprises plus allied agriculture.
How It Works
MUDRA Ltd is a refinance agency, not a direct lender: it refinances Member Lending Institutions (scheduled commercial banks, RRBs, small finance banks, NBFCs, MFIs) that do the actual lending. Credit risk is covered by the CGFMU guarantee administered by NCGTC. The JanSamarth portal (14 credit-linked schemes, 200+ lenders) is the digital front door.
The Inclusion Story (FY 2024-25)
- Women: 59.81 percent of loan accounts (37.45 percent of disbursed amount)
- New entrepreneurs: 21 percent of accounts, 30.09 percent of amount
- SC + ST + OBC borrowers: 45.52 percent of accounts
- Top disbursement states: Uttar Pradesh (Rs 58,111 crore), Bihar (Rs 54,064 crore), Maharashtra (Rs 50,762 crore)
- MUDRA Ltd posted its highest-ever profit: Rs 827 crore+
Mains Angle
Strengths: the deepest formal-credit penetration ever achieved at the micro end; women’s majority share makes it the largest women-led-development credit instrument. Critiques to balance: average ticket sizes stay small (Shishu-heavy), employment per loan is thin, and NPA discipline depends on lender incentives the refinance model only partly controls. Way forward: graduate borrowers up the Shishu-Kishor-Tarun ladder, link with skilling (PMKVY) and market access (ONDC, GeM).
📌 Facts Corner — Knowledgepedia
Scale (as of March 27, 2026):
- 57.79 crore loans; Rs 40.07 lakh crore sanctioned; 12 crore+ new-entrepreneur accounts
Design:
- Shishu / Kishor / Tarun / Tarun Plus (Rs 20 lakh ceiling, added 2024); collateral-free
- MUDRA = refinance agency; guarantee via CGFMU under NCGTC; JanSamarth portal front-end
Inclusion (FY 2024-25):
- Women 59.81 percent of accounts; SC/ST/OBC 45.52 percent
- Top states: UP, Bihar, Maharashtra
- Launched April 8, 2015; in April 2026 e-NAM and UPI also marked anniversaries (both launched April 2016; e-NAM connects 1,522 mandis)
