MUDRA was launched as a refinancing institution to provide funding support to the lending institutions engaged in financing micro units in the country. Micro enterprises are an important sector of the Indian economy which is providing jobs to millions of people and promoting income as well. It is estimated that more than 60 million micro enterprises support over 100 million people for their employment and livelihood. Micro enterprise constitutes an important pillar of Indian economy as they account for more than 90 percent of non agriculture employment. The sector continues to grow despite of issues like non availability of credit, limited market linkages, technology obsolescence, etc. Access to institutional finance could potentially turn these micro entrepreneurs into strong instruments of GDP growth and employment. To build on this opportunity Government of India initiated the Micro Units Development and Refinance Agency Limited (MUDRA) in 2015-2016 with the mandate of ‘Funding the Unfunded’ micro entrepreneurs. On this background the paper attempts to study the performance of PMMY Scheme and evaluate the performance in India and in the state of Tamilnadu.