Shishu account share drops sharply as Kishor loans surge: SBI PMMY Report

The share of Shishu accounts has significantly declined from 93 per cent in FY16 to 51.7 per cent in FY25, while the share of Kishor accounts has risen to 44.7 per cent in FY25, up from just 5.9 per cent in FY16. This shift indicates that many Shishu account holders have grown and transitioned to Kishor loans with higher limits, according to the State Bank of India's research report on the completion of ten years of the Pradhan Mantri Mudra Yojana (PMMY).

 

The report further said that in ten years, cumulatively more than 52 crore accounts under Mudra have been opened, of which 78 per cent of the accounts are Shishu (₹40 crore), 20 per cent are Kishor (₹10 crore), and 2 per cent are Tarun/Tarun Plus (₹2 crore).

 

PMMY ensures collateral-free institutional credit of up to Rs 20 lakh is provided by member lending institutions (MLIs), which include scheduled commercial banks (SCBs), regional rural banks (RRBs), non-banking financial companies (NBFCs), and microfinance institutions (MFIs).

 

“The growth in the amount of loans disbursed averaged 33 per cent in the first three years but declined thereafter due to COVID-19. Again, disbursal increased by 36 per cent in FY23, signalling return of animal spirits at the bottom of the pyramid of India Inc,” said the SBI report.

 

The average ticket size of the loans has nearly tripled — Rs 1.02 lakh in FY25, Rs 72,000 in FY23, from Rs 38,000 in FY16.

 

Among states, Bihar has the largest number of PMMY women entrepreneurs (4.2 crore), followed by Tamil Nadu (4.0 crore) and West Bengal (3.7 crore). Maharashtra has the largest share of women account holders (79 per cent) in total accounts, followed by Jharkhand (75 per cent) and West Bengal (73 per cent).

 

“We believe that increasing women participation in PMMY (68 per cent of account holders are women) leads to better financial situation of women borrowers,” said the SBI report.

 

The report also highlighted that in the last nine years (FY25 over FY16), while the per woman PMMY disbursement amount increased by a compound annual growth rate (CAGR) of 13 per cent to Rs 62,679, the per woman incremental deposits increased by a CAGR of 14 per cent to Rs 95,269.