PMMY at 10 Years: SBI Report on State-wise Mudra Loan Shift
Why in the news
A State Bank of India research report reviewed ten years of the Pradhan Mantri Mudra Yojana and found that credit is moving toward regions that were once starved of formal finance.
Key facts
- Total sanctions exceed ₹33 lakh crore over the decade.
- Average ticket size climbed from ₹38,000 (FY16) to ₹1.02 lakh (FY25), a sign that small firms are growing.
- Maharashtra, Tamil Nadu and Karnataka still lead in absolute volumes.
- North-East India has seen steady growth, undoing old credit gaps.
| State | Share in FY16 | Share in FY25 |
|---|---|---|
| Bihar | 5.67% | 10.97% |
| Uttar Pradesh | 9.27% | 11.30% |
| Odisha | 4.24% | 4.51% |
Reasons for the shift
- Policy attention on under-served regions.
- Easier access to micro-credit for small businesses.
- Efforts to narrow regional financial gaps.
- Digital tools such as PSB Loans in 59 Minutes and UdyamiMitra; the Unified Lending Interface (ULI) is expected to help low-penetration states further.
Concerns and way forward
- Bottlenecks: weak infrastructure, low financial literacy, little skill and entrepreneurship training.
- Suggestions: continuous capacity building, stronger market linkages, and pairing credit with entrepreneurial support.
- Next phase should stress usage, business sustainability and grassroots empowerment.
Exam angle
- Scheme: PMMY, reviewed for FY16 to FY25.
- Related terms: ULI, UdyamiMitra, PSB Loans in 59 Minutes.