New Gharouni Act in UP to provide loans for building houses in rural areas
Once this law is notified, villagers will be able to obtain bank loans for building houses. Amendments to ownership records on residential land will also be possible.
Over 52 crore loans worth Rs 32.61 lakh crore have been sanctioned under the PM Mudra Yojana since the scheme’s launch in April 2015, fuelling a nationwide entrepreneurial revolution.
The scheme that completed 10 years after its launch on April 8, 2015 has reshaped India’s entrepreneurial landscape, drawing global recognition as a model for financial inclusion.
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“Under the scheme, three categories of interventions have been formulated which include; Shishu (Loan up to Rs 50,000); Kishor (Loan above Rs 50,000 and up to Rs 5 lakh); Tarun (Loan above Rs 5 lakh and up to Rs 10 lakh) and additionally Tarun Plus (Loans above Rs 10 lakh and up to Rs 20 lakh),” official sources said on Monday.
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According to “Outcomes of ModiNomics 2014-24” report by SKOCH in 2024, at least 5.14 crore person-years of employment on average every year has been generated since 2014 with the (PMMY) itself adding 2.52 crore steady and sustainable employment as an average per year since 2014.
One example of this transformation in Jammu and Kashmir is that it has been highly benefited under the MUDRA scheme that is evident from the fact that in Jammu and Kashmir 20,72,922 loans have been sanctioned.
By formalising informal sector businesses, the PM Mudra Scheme has expanded the nation’s tax base and strengthened the financial ecosystem.
The PMMY has encouraged an entrepreneurial mindset among the youth, especially in smaller towns and villages. Loans worth Rs 10 lakh crore helped new entrepreneurs take off.
A significant proportion of Mudra loans (nearly 70 per cent) have been availed by women entrepreneurs, enhancing their financial independence and contributing to gender equality.
In the last nine years (FY25 over FY16) while per woman PMMY disbursement amount increased by a CAGR of 13 per cent to Rs 62,679, the per woman incremental deposits increased by a CAGR of 14 per cent to Rs 95,269.
Many beneficiaries have used Mudra loans not only for business expansion but also for acquiring new skills or upgrading technology, thereby improving productivity.
The scheme has fostered a sense of self-reliance among marginalised groups by enabling them to sustain their livelihoods through entrepreneurship. SC, ST, and OBC entrepreneurs received over 50 per cent of all Mudra loans.
In 2017, the IMF praised PM Mudra Yojana by saying that it has been successful in enabling women-led businesses to access finance. To complement PMJDY’s focus on unbanked households, the Pradhan Mantri MUDRA Yojana (PMMY) scheme launched in January 2016, aims to enable access to formal finance for micro, small and medium-sized businesses by providing collateral-free loans.
Again in 2019, the IMF praised the Mudra Yojana highlighting that Pradhan Mantri Mudra Yojana scheme under the Micro Units Development and Refinance Agency is responsible for developing and refinancing micro enterprises by supporting financial institutions which lend to micro and small business entities engaged in manufacturing, trading and services.
In 2023, the IMF said the PM MUDRA scheme, which extends collateral-free loans with a special focus on women’s entrepreneurship, has helped boost the number of women-owned MSMEs, which now stand at more than 2.8 million. In the 2024 release it said that an enabling policy environment for entrepreneurship through various programmes such as the Pradhan Mantri Mudra Yojana is contributing to increased self-employment and formalisation through credit.
A recent State Bank of India (SBI) report on Mudra highlights how Mudra has transformed entrepreneurship, especially for marginalized groups, women, and micro-businesses.
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