This research aims to analyze the significance and function of MUDRA as a means of providing financial support to the micro, small, and medium-sized enterprise (MSME) sector. The study relies on secondary data sources, including the official website of MUDRA.org, the PMMY report, newspapers, periodicals, and other public materials. The micro, small, and medium-sized enterprise (MSME) sector significantly contributes to the growth and advancement of the Indian economy. The advancement of this sector is of utmost importance in order to fulfill the national objectives of promoting participation in the financial system and the creation of substantial numbers of jobs in both urban and rural areas. The actualization of the Pradhan Mantri MUDRA Yojana (PMMY) Scheme and the establishment of a specialized for the micro, small, and medium-sized enterprise (MSME) sector, known as MUDRA, have provided a substantial impetus to the expansion of the Indian MSME sector. These initiatives aim to enhance the economic impact of the industry on India's Gross Domestic Product (GDP). Which now stands at 38%. This financial institution significantly enhances the self-assurance of young, educated, and talented individuals, enabling them to strive to become entrepreneurs as first-generation participants. Additionally, it facilitates the expansion of existing small firms by providing them with opportunities to broaden their operations. The primary goals of Mudra encompass the promotion of entrepreneurial endeavors and the expansion of capacities and operations for small business units. Additionally, it aims to mitigate the issue of excessive indebtedness while establishing a structured credit system.