Pradhan Mantri Mudra Yojana (PMMY), launched April 8, 2015, completed 11 years of providing collateral-free loans to micro and small enterprises. Operating through three categories—Shishu (up to ₹50,000), Kishor (₹50,001-₹5 lakh), Tarun (₹5-₹10 lakh)—PMMY has sanctioned over 40 crore loans worth ₹23 lakh crore. Administered by MUDRA Limited under RBI, it targets non-corporate, non-farm income-generating activities. Women borrowers constitute 68% of beneficiaries, promoting financial inclusion and entrepreneurship.

PMMY addresses the critical credit gap facing India's 5.77 crore micro-enterprises, which contribute 30% to GDP but struggled with formal credit access. The scheme operates through all scheduled commercial banks, RRBs, cooperative banks, MFIs, and NBFCs, creating a comprehensive delivery network. Its significance lies in democratizing credit—moving from traditional collateral-based lending to cashflow-based assessment. The Mudra card facility provides working capital flexibility, while priority sector lending norms incentivize banks. PMMY's success metrics include job creation (estimated 12+ crore), formalization of informal sector businesses, and reduced dependence on informal money lenders. The scheme particularly empowers women entrepreneurs, SC/ST communities, and first-generation entrepreneurs. However, challenges include NPAs in microfinance, over-indebtedness concerns, and ensuring credit reaches intended beneficiaries versus consumption purposes. Recent focus includes digital lending platforms, integration with PM SVANidhi for street vendors, and strengthening post-sanction monitoring. PMMY represents India's largest microfinance initiative, crucial for achieving the vision of becoming a $5 trillion economy by leveraging grassroots entrepreneurship.