Daijiworld Media Network - New Delhi

New Delhi, Apr 8: On the completion of 10 years of the Pradhan Mantri Mudra Yojana (PMMY), banking expert Ashwini Rana hailed the initiative for significantly transforming the financial landscape of the country and giving a major push to self-employment.

Speaking on the milestone, Rana, founder of Voice of Banking, said that the scheme launched by Prime Minister Narendra Modi in April 2015 aimed to empower individuals aspiring to start their own ventures by providing easy and collateral-free loans.

The scheme offers loans under three primary categories — Shishu (up to Rs 50,000), Kishor (SR 50,001 to Rs 5 lac), and Tarun (Rs 5 lac to Rs 10 lac). A new tier, Tarun Plus, introduced last year, extends the loan limit up to Rs 20 lac.

“Over the last decade, more than 52 cr Mudra loans amounting to Rs 33 lac cr have been disbursed,” Rana informed, adding that this has positively impacted the lives of millions and strengthened grassroots entrepreneurship.

He also highlighted that women entrepreneurs were given priority under the scheme. Apart from public sector banks, private banks and NBFCs have played an active role in its implementation.

Addressing concerns on loan defaults, Rana said the current NPA (Non-Performing Asset) rate under Mudra loans stands at 3.5%, a manageable figure given the scale of disbursal. “The government also acts as a guarantor, ensuring that banks are not burdened if loans default,” he explained.

Calling the scheme a ‘success story of inclusive growth,’ Rana emphasized that the PMMY continues to fuel India's entrepreneurial spirit, especially among youth and underprivileged sections of society.