₹33L crore loan disbursed under Mudra Yojana; majority beneficiaries women
What's the story
The Pradhan Mantri Mudra Yojana (PMMY) entered the milestone of its 10th year of implementation on Tuesday. Since its launch on April 8, 2015, the scheme has provided over ₹33 lakh crore in collateral-free loans to over 52 crore beneficiaries in India. According to the Ministry of Finance and the Press Information Bureau (PIB), PMMY has been instrumental in promoting grassroots entrepreneurship, especially among women and marginalized communities.
Empowerment
PMMY's impact on marginalized communities and women entrepreneurs
PMMY has "uplifted millions by nurturing grassroots entrepreneurship," said Shikhar Aggarwal, Chairman, BLS E-Services. He added the scheme has empowered micro and small enterprises while supporting millions of women entrepreneurs at the grassroots level. A recent State Bank of India (SBI) report adds weight to the claim. It found 50% of Mudra accounts belong to SC, ST, and OBC entrepreneurs. Another 11% of Mudra loan holders are from minority communities.
Loan categories
PMMY's loan categories and trends over the years
PMMY loans are classified into three categories: Shishu (up to ₹50,000), Kishor (₹50,000-₹5 lakh), and Tarun (₹5-₹10 lakh). Trends suggest an increasing move upwards, from smaller Shishu loans to higher-valued Kishor and Tarun loans. From just 5.9% of total disbursements (FY16), Kishor loans surged to 44.4% (FY25). Average loan size also saw a jump during the same period - from ₹38,000 (FY16) to over ₹1.02 lakh (FY25).
Growth
Women lead in credit growth and MSME expansion
From FY16 to FY25, the average loan per woman borrower grew at a 13% CAGR and stood at ₹62,679. Average deposit balances of women also increased 14% annually to ₹95,269. The scheme has been instrumental in increasing overall MSME credit too. According to SBI's report, credit to the MSME sector grew from ₹8.51 lakh crore in FY14 to ₹27.25 lakh crore in FY24 and is expected to cross ₹30 lakh crore in FY25.
Performance
PMMY's performance and regional distribution of loans
As of February 2025, Tamil Nadu (₹3.23 lakh crore), Uttar Pradesh (₹3.14 lakh crore), Karnataka (₹3.02 lakh crore), Maharashtra, and West Bengal were the top five states in total Mudra disbursements. Jammu & Kashmir topped among UTs with ₹45,816 crore disbursed across over 21 lakh accounts. The scheme maintained an overall low non-performing asset (NPA) ratio of just 3.6%, while the specific NPA ratio for FY25 stood at 2.21%, said DFS Secretary M Nagaraju.