Prime Minister Narendra Modi on Tuesday said that the Pradhan Mantri MUDRA Yojana (PMMY), launched 10 years ago on April 8, has played a pivotal role in empowering the poor at the grassroots level. He highlighted that over 52 crore loans worth ₹33 lakh crore have been disbursed under the scheme, making it a remarkable success.
The Prime Minister said that the MUDRA scheme was born from his experiences while travelling across the country as a “karyakarta.” During these travels, he witnessed a pressing need to “fund the unfunded” and uplift those left out of the formal financial system.
PM Modi emphasised that the scheme has democratised the financial ecosystem. He also pointed out that only 3.5% of loans under the scheme have turned into non-performing assets (NPAs), a testament to its sound implementation.
In a post on X, the Prime Minister said, “Sharing my interview with Economic Times, where I elaborate on the life-changing ability of Mudra Yojana and why it remains an important scheme in our quest for dignity and empowerment. #10YearsOfMUDRA.”
He urged people to view the MUDRA (Micro Units Development & Refinance Agency) scheme not in isolation, but as part of a broader, people-centric financial architecture.
“Even before I held any government position, I had travelled extensively across the country for many decades as a karyakarta. A common theme I observed was that the poor, farmers, women, and marginalised sections had strong aspirations, entrepreneurial spirit, and resilience — yet they were excluded from the formal banking system,” PM Modi said.
“Tell me, if you do not have a bank account, will you ever visit a bank? When people didn’t even have access to basic banking, funding entrepreneurship was a distant dream,” he added.
He said that when the people voted for his government in 2014, they set out to build an inclusive, people-centric financial system that could support these aspirations.
This transformation, he explained, began with banking the unbanked through the Jan Dhan Yojana. Once people were brought into the formal financial fold, the next step was funding the unfunded through MUDRA Yojana and insuring the uninsured via the Jan Suraksha schemes.
“MUDRA is part of a larger vision — one that respects, supports, and celebrates the entrepreneurial ability and creativity at the grassroots,” PM Modi said.
He further said that the scheme sent a powerful message of trust to every Indian — that the government believed in their potential and would stand as a guarantor in their journey to success.
“Trust begets trust. People responded with great zeal. Today, with over 52 crore loans worth ₹33 lakh crore, they have made MUDRA a massive success,” he noted.
Addressing the issue of NPAs, Modi contrasted the current approach with what he described as the “phone banking” model during the Congress-led UPA regime.
“Back then, loans were sanctioned based on political connections, not competence. This led to the twin balance sheet crisis, eroded transparency, and left public sector banks burdened with stressed assets,” he said.
In contrast, the MUDRA Yojana focused on empowering small and medium entrepreneurs — people who had no elite connections but possessed the will and skill to succeed.
“Unlike the UPA’s top-heavy lending model, MUDRA targeted grassroots economic activity. With more than 52 crore loan accounts today, the scheme reflects both scale and ambition,” Modi asserted.
He recalled how some Congress leaders and their allies had predicted that offering credit to crores of small borrowers would trigger a spike in NPAs.
“They didn’t trust the poor and middle class of India. But the outcomes proved them wrong. With just 3.5% NPAs — an exceptionally low rate globally for this segment — MUDRA loans have shown the strength of grassroots entrepreneurship,” the Prime Minister said.
He concluded by saying that while the UPA’s lending practices benefitted a select few close to power centres, the MUDRA Yojana has redirected financial resources to the people — fuelling enterprise and preserving financial stability.
— IANS