Pradhan Mantri Mudra Yojana (PMMY) Overview
The Pradhan Mantri Mudra Yojana (PMMY) was launched on April 8, 2015, by Prime Minister Narendra Modi. It aims to provide collateral-free institutional credit up to ₹20 lakh through Member Lending Institutions (MLIs).
Loan Categories and Average Ticket Sizes
- Shishu: Loans up to ₹50,000
- Average ticket size increased to ₹37,403 in FY25 from ₹19,411 in FY16.
- Kishor: Loans between ₹50,000 and ₹5 lakh
- Average ticket size decreased to ₹1,20,111 in FY25 from ₹2,08,037 in FY16.
- Tarun: Loans between ₹5 lakh and ₹10 lakh
- Average ticket size increased to ₹8,46,313 in FY25 from ₹7,67,555 in FY16.
- Tarun Plus: Loans up to ₹20 lakh for entrepreneurs who have successfully repaid previous loans under the Tarun category.
State-wise Loan Account Sanctions
- Bihar leads with 5.95 crore accounts.
- Tamil Nadu follows with 5.82 crore accounts.
- Uttar Pradesh has 5.16 crore accounts.
- West Bengal comes next with 5.15 crore accounts.
- Karnataka has 4.98 crore accounts.
Impact and Achievements
- Since inception, over 52.37 crore loans amounting to ₹33.65 trillion have been sanctioned.
- Approximately 20% of loans have been allocated to new entrepreneurs/accounts.
- 68% of loans have been granted to women entrepreneurs.
- 50% of loans have been allocated to SC/ST/OBC borrowers.
Justification and Need
Before the PMMY, small businesses struggled to access formal credit, often borrowing from moneylenders at high interest rates. The scheme addresses this gap by providing financial support to micro and small enterprises, promoting entrepreneurship and economic growth.