Statsguru: Mudra Yojana's Shishu loan accounts see a decline since FY19

The limit of loans under the Pradhan Mantri Mudra Yojana (PMMY) was doubled to Rs 20 lakh recently, inserting a new category—Tarun Plus. Launched 10 years ago, the scheme intended to provide microfinance to small entrepreneurs. However, the number of Shishu loan accounts (part of PMMY) declined in 2023-24 (FY24) compared to the pre-Covid period of FY19.

 

Even its share in the total Mudra accounts fell from 86.03 per cent in FY19 to 62.33 per cent in FY24. The share of Tarun accounts also dropped marginally. The share of Kishore accounts reached an all-time high in FY24 (chart 1). 

 

Loan accounts in the Northeast fell by 61.28 per cent in FY24 vis-a-vis FY19. All other regions saw a rise in loan accounts (chart 2).   People belonging to the General category own over half of all Mudra loan accounts in FY24 which is an all-time high (chart 3). 

 

Women have taken a hit, especially over the past two years, as their share in the number of loan accounts dried down to 63.63 per cent in FY24 (chart 4). 

 

The share of non-banking financial companies (NBFCs) in Mudra loan disbursal has halved from 15.03 per cent in FY19 to 7.31 per cent in FY24. Meanwhile, the share of private-sector banks has jumped to 32.86 per cent in FY24 from 20.4 per cent in FY19 (chart 5). 

 

   The non-performing assets (NPAs) on Mudra loans have declined from 2.86 per cent in FY19 to 2.1 per cent in FY24 (chart 6).