Paper Details

The Pradhan Mantri MUDRA Yojana (PMMY), launched in 2015, is a flagship initiative designed to extend collateral-free loans to micro and small enterprises, thereby addressing financial exclusion and promoting entrepreneurship. This study evaluates the performance of PMMY from 2016 to 2024 using secondary data, focusing on institutional performance, state-wise and regional trends, borrower categories, and social group participation. Findings show that total loan disbursements rose significantly from Rs 1.17 lakh crore in 2016–17 to Rs 5.32 lakh crore in 2023–24, with public sector banks leading, though private banks, small finance banks, NBFCs, and MFIs have expanded their share in recent years. Tamil Nadu, Karnataka, and Maharashtra consistently led in sanctions, while states like Uttar Pradesh and Bihar showed rapid growth in later years. Regionally, the South, West, and East displayed strong and steady growth, while the East and North-East faced contraction, highlighting uneven outreach. Category-wise analysis indicates robust growth in Kishor and Tarun loans, reflecting rising demand for mid- and high-value credit, while Shishu loans, though widespread, declined in sanctioned amounts, pointing to small ticket sizes. Social group analysis highlights growing participation of SC, ST, OBC, women, minorities, and new entrepreneurs, though disparities persist in sanction amounts compared to general category borrowers. Women’s participation, in particular, has expanded sharply, crossing 4.2 crore accounts by 2023–24. The study concludes that PMMY has significantly deepened financial inclusion and entrepreneurship but faces challenges such as regional imbalances, limited awareness, and small loan sizes. Policy suggestions include targeted literacy drives, flexible loan structures, and enhanced support mechanisms to ensure sustainable and equitable impact.

PMMY, Financial Inclusion, Microfinance, Entrepreneurship, Women Empowerment, Regional Disparities, Shishu, Kishore, and Tarun.