PMMY Supports Micro Enterprise & Womenpreneurship Growth

By: WE Staff | Wednesday, 8 April 2026

• An entrepreneur progressed from operating a sewing machine at home to setting up a tailoring shop using a MUDRA Shishu loan
• This loan helped her receive bigger orders and formalize her enterprise
• She currently employs three other women

At a meeting organized as part of the India’s 75th Republic Day festivities, an entrepreneur narrated her tale of growing up from being a tailor making clothes on an outdated sewing machine to having a tailoring business.

In earlier days, her income barely sustained herself. Through a small amount of funding through MUDRA Shishu loan, she was able to formalize her business and take up more orders and currently employs three others.

The third entrepreneur is from the north-eastern part of the country. She engaged in making candles. By obtaining funds from the bank through the use of the Kishore loan scheme, she managed to expand her operations by getting better quality materials. Today, she supplies materials to other entrepreneurs at reasonable prices.

In this case, we see the significance of the Pradhan Mantri MUDRA Yojana (PMMY). This program forms part of the biggest credit programs in the world, especially targeting microenterprises.

PMMY forms part of the country’s financial inclusion flagship scheme introduced on April 8, 2015. Its key purpose is to provide collateral-free institutional credit to micro-enterprises who remained outside the formal credit system.

The plan was devised to fill a crucial hole in the Indian financial system - there was a lack of formal lending to micro-enterprises, including small traders, craftsmen, and self-employed people, who often worked informally.

Such businesses play an important role in job creation and economic growth. The goal of PMMY is to give the tiniest businessmen an opportunity to borrow money to launch, maintain, and expand their ventures.

This measure promotes good borrowers and closes the gap between micro and small enterprises by providing uninterrupted financing.

All MUDRA loans are unsecured, eliminating one of the main barriers for borrowing among micro businesses. The lending system is guaranteed to encourage banks to lend money while reducing risks.