As Mudra turns 10, signs of beneficiaries moving into higher loan bracket

The share of Shishu accounts declined to 51.7% of the total in FY25 while Kishor accounts' share has increased to 44.7%, suggesting some Shishu account holders have grown and availed Kishor loans

On 8th April, the Pradhan Mantri MUDRA Yojana (PMMY) will turn 10. During this period, cumulatively more than 52 crore accounts have been opened. Under the scheme, three categories of interventions have been formulated: Shishu (loans up to Rs 50,000), Kishor (loans above Rs 50,000 and up to Rs 5 lakh), Tarun (loans above Rs 5 lakh and up to Rs 10 lakh), and Tarun Plus (loans above Rs 10 lakh and up to Rs 20 lakh). The last one is designed specifically for Tarun category beneficiaries who have previously availed and successfully repaid their earlier loan. 

 

In this period, 78 per cent of the accounts are Shishu (40 crore), 20 per cent are Kishor (10 crore) and two per cent Tarun/Tarun Plus (2 crore). Interestingly, the share of Shishu in total has declined to 51.7 per cent in FY25 from 93 per cent in FY16, while the Kishor account share has increased to 44.7 per cent from 5.9 per cent. This suggests that some Shishu account holders have grown and availed Kishor loans of higher loan limit.