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According to a press release by the Ministry of Finance and the Press Information Bureau (PIB), the flagship scheme has been instrumental in enabling grassroots entrepreneurship, especially among women and marginalised communities.
Out of the total Mudra loan accounts,
68% belong to women entrepreneurs.
“The scheme has uplifted millions by nurturing grassroots entrepreneurship. Since its launch, it has empowered micro and small enterprises and supported millions of women entrepreneurs at the grassroots level,” said Shikhar Aggarwal, Chairman of BLS E-Services.
Strong social and financial impact
According to the SBI report, 50% of Mudra accounts are held by Scheduled Caste (SC), Scheduled Tribe (ST) and OBC entrepreneurs.
Furthermore, 11% of Mudra loan holders belong to minority communities.
The scheme provides loans under three categories:
- Shishu – up to ₹50,000
- Kishor – ₹50,000 to ₹5 lakh
- Tarun – ₹5 lakh to ₹10 lakh
In recent years, there has been a visible shift from smaller Shishu loans to higher-value Kishor and Tarun loans. As per data cited in the press note, Kishor loans formed just 5.9% of total disbursements in FY16. This jumped to 44.7% in FY25.
The average loan size also tripled during this period—from ₹38,000 in FY16 to over ₹1.02 lakh in FY25.
Women at the forefront of credit growth
Between FY16 and FY25, the average loan per woman borrower grew at a compound annual growth rate (CAGR) of 13%, reaching ₹62,679.
Average deposit balances for women also rose 14% annually to ₹95,269, according to the PIB statement.
States that disbursed a higher share of Mudra loans to women also saw a corresponding increase in employment in women-led MSMEs.
Credit to MSMEs expands rapidly
The scheme has played a key role in expanding overall MSME credit. SBI report noted that credit to the MSME sector rose from ₹8.51 lakh crore in FY14 to ₹27.25 lakh crore in FY24, and is projected to cross ₹30 lakh crore in FY25.
The share of MSME lending in total bank credit improved from 15.8% to nearly 20% during the same period.
Leading states and regions
As of February 2025, the top five states in terms of total Mudra disbursements were:
- Tamil Nadu: ₹3.23 lakh crore
- Uttar Pradesh: ₹3.14 lakh crore
- Karnataka: ₹3.02 lakh crore
- Maharashtra and West Bengal followed closely.
Among Union Territories, Jammu & Kashmir led with ₹45,816 crore disbursed across more than 21 lakh accounts.
NPA under Mudra just 3.6%
The government said that despite the massive outreach of the scheme, the overall non-performing asset (NPA) ratio has remained low.
“The NPA under PM Mudra Yojana is only 3.6%,” said DFS Secretary M Nagaraju.
“This is the biggest programme in the world which guarantees loans of this size to such a large number of people,” he added.
International endorsement
The International Monetary Fund (IMF), in its 2024 report, praised the Mudra scheme for its role in expanding access to finance and promoting inclusive entrepreneurship in India.
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