Average Mudra loan size down in Kishore category, up in Shishu segment

Tarun segment also sees an increase in ticket size

The average ticket size of the sanctioned amount under the Pradhan Mantri Mudra Yojana (PMMY) scheme for the Kishor category has decreased to ₹1,20,111 in the financial year 2024-25 (FY25), down from ₹2,08,037 in FY16. However, the average ticket size for the Shishu category increased to ₹37,403 from ₹19,411, and the Tarun category moved up from ₹7,67,555 in FY16 to ₹8,46,313 in FY25.

 

Bihar leads the top five states based on the number of loan accounts sanctioned (5.95 crore), followed closely by Tamil Nadu with 5.82 crore accounts. Uttar Pradesh ranks third with 5.16 crore loan accounts, while West Bengal comes in fourth with 5.15 crore accounts. Karnataka completes the list in fifth place with 4.98 crore accounts.

 

The PMMY was launched on April 8, 2015, by the Prime Minister Narendea Modi with the goal of providing collateral-free institutional credit of up to ₹20 lakh through Member Lending Institutions (MLIs).

 

“This initiative was designed to give micro and small businesses access to institutional financing, which was previously unavailable to them. The loan is available for income-generating activities in manufacturing, trading, services, or allied agricultural sectors, and is available through four loan categories," the Department of Financial Services (DFS) said in a statement.

 

The loan categories under the scheme are: Shishu (loans up to ₹50,000), Kishor (loans between ₹50,000 and ₹5 lakh), Tarun (loans between ₹5 lakh and ₹10 lakh), and Tarun Plus (loans up to ₹20 lakh for entrepreneurs who have successfully repaid previous loans under the Tarun category).

 

Since the scheme’s inception, over 52.37 crore loans amounting to ₹33.65 trillion have been sanctioned, with approximately 20 per cent of them to new entrepreneurs/accounts. Notably, 68 per cent of the loans have been granted to women entrepreneurs, and 50 per cent have gone to SC/ST/OBC borrowers.

 

“Before the launch of the scheme, many small businesses struggled to access formal credit and were often forced to borrow from moneylenders charging exorbitant interest rates. To address this gap, the Mudra Yojana was introduced to provide financial support to micro and small enterprises, thereby promoting entrepreneurship and economic growth,” the DFS statement said.