PM Mudra Yojana: Trends and Analysis of the Past 10 Years

The PM Mudra Yojana was launched on April 8, 2015. Various government sources suggest varying trends in average loan sizes disbursed under the scheme. The initiative aims to give micro and small businesses access to formal financing. This includes loans for income-generating activities such as manufacturing, trading, and allied agricultural sectors.

Loan Categories Under the Scheme

Under the PM Mudra Yojana, loans are provided based on this classification of businesses:

Changing Average Loan Sizes Under PM Mudra Yojana

The Pradhan Mantri Mudra Yojana (PMMY) scheme shows changing trends in average loan sizes. For the Kishor category, the average sanctioned amount has decreased. It was ₹1,20,111 in FY25. This is a drop from ₹2,08,037 in FY16.

However, the average loan size under the Shishu category rose to ₹37,403 in FY25. It was ₹19,411 in FY16. The Tarun category also registered a similar trend, with average loan size increasing from ₹7,67,555 in FY16 to ₹8,46,313 in FY25.

Tarun Plus Gains Traction Under PM Mudra Yojana

Lenders onboarded roughly 25,000 new beneficiaries under PMMY’s Tarun Plus category within the first 4 months of FY25. These borrowers received enhanced loans up to ₹20 lakh. Financial Services Secretary M Nagaraju reported that 24,557 new borrowers accessed ₹3,790 crore in loans under this category during this short period, highlighting the scheme’s achievements.

Top States for Loan Sanctions under PM Mudra Yojana

Here is a breakdown of the states which were granted highest amount of loans under the PM Mudra Yojana:

Conclusion

The Mudra Yojana has shown varying trends in loan sizes across its categories. Bihar and Tamil Nadu lead in the number of sanctioned loans. Since its inception, the scheme has significantly supported numerous entrepreneurs, especially women and those from disadvantaged communities, by providing access to formal credit.

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