Approximately 50% of Mudra accounts belong to SC, ST and OBC; Enhanced Financial Independence: SBI Reports

New Delhi [India]April 3 (ANI): Pradhan Mantri Mudra Yojana (PMMY) is enhancing financial independence among marginalized groups, as nearly 50% of the 520 million PMMY accounts belong to the individuals of the Planned Caste (SC), Planned Tribe (ST) (ST) and other backward class (OBC), the National Bank of India (ST).

The report further highlights that PMMY has become a key tool to make non-general entrepreneurs financially self-sufficiency. The program was established in 2015 by the Prime Minister in 2015 to provide transparent, unsecured and adequate financial support to small businesses at the grassroots level.

Over the years, it has played a key role in changing the country’s entrepreneurial landscape.

The report said: “The impact of PMMY on entrepreneurs to date is commendable, which instills a true sense of financial independence… Nearly half of the PMMY account, which is close to Rs 52 crore, belongs to the SC/ST and OBC social class”

One of the key points of the report is women’s participation in the program. About 68% of the total PMMY account holders are female entrepreneurs, reflecting the effectiveness of the program in terms of economic empowerment of women.

In addition, approximately 11% of beneficiaries belong to minority communities, further strengthening the impact of the program on financial inclusion.

The report also highlights a significant increase in financial support for female entrepreneurs under PMMY. Over the past nine years (frequently FY25 compared to FY2016), the average loan expenditure has increased with a compound annual growth rate (CAGR) of 13% ₹62,679.

Meanwhile, women’s incremental sediments increased at a compound annual growth rate of 14%, forming ₹95,269. This trend demonstrates the success of the program in promoting financial stability and growth for female borrowers.

PMMY implemented through the Micro Unit Development and Refinancing Agency (MUDRA) revolutionized the credit accessibility of small and micro entrepreneurs.

By ensuring easy and unsecured loans, it provides thousands of aspiring business owners with the financial support they need to turn their ideas into successful businesses.

The report acknowledged that PMMY has been a transformative force that has stepped marginalized communities into entrepreneurship, resulting in a ripple effect of financial independence and economic development.

As the program continues to expand, it is expected to further strengthen India’s small business ecosystem, thereby promoting inclusive growth and empowerment at the grass-roots level. (ANI)