Why in the news
Ten years after launch, PMMY’s record drew attention: Q3 FY25 saw the highest quarterly disbursement ever, and the scheme now includes a larger Tarun Plus slab.
Key facts
- Launch: 8 April 2015; lenders are banks, NBFCs and microfinance institutions.
- From April 2015 to February 2025, Rs 31.85 lakh crore was disbursed against Rs 32.61 lakh crore sanctioned.
- About 52 crore accounts opened so far; Bihar tops the account count at roughly 5.8 crore, followed closely by Tamil Nadu.
- Q3 FY25 set a record with Rs 3.39 lakh crore disbursed; the first half of FY25 had dipped slightly (Rs 1.86 lakh crore, below Rs 1.92 lakh crore the previous year).
- About 68% of borrowers are women; roughly half are from SC, ST and OBC groups.
- Average ticket size is rising because Kishore and Tarun loans grow faster than Shishu.
Loan slabs
| Category | Loan range |
|---|
| Shishu | Up to Rs 50,000 |
| Kishore | Rs 50,000 to Rs 5 lakh |
| Tarun | Rs 5 lakh to Rs 10 lakh |
| Tarun Plus | Rs 10 lakh to Rs 20 lakh (from October 2024, Budget 2024-25) |
Top states by amount
| State | Amount (Rs lakh crore) |
|---|
| Tamil Nadu | 3.21 |
| Uttar Pradesh | 3.07 |
| Karnataka | 2.98 |
| West Bengal | 2.78 |
| Bihar | 2.77 |
| Maharashtra | 2.69 |
How it works
- Eligible: non-corporate individuals or units with a viable plan in manufacturing, trade, services or allied farm activity such as dairy, poultry or bee-keeping; the loan must generate income, not fund consumption.
- Lenders: scheduled commercial banks, RRBs, small finance banks, NBFCs and MFIs; Shishu loans carry no collateral or processing fee.
- MUDRA Ltd (Micro Units Development and Refinance Agency) is a SIDBI subsidiary; it refinances lenders and sets guidelines but does not lend itself.
- Guarantee cover comes from the Credit Guarantee Fund for Micro Units (CGFMU), managed by NCGTC.
- Borrowers can apply at branches or on the Udyamimitra and JanSamarth portals; the Mudra card is a RuPay debit card tied to the working-capital limit.
Significance and criticism
- It is the main formal credit route for street vendors, artisans, shopkeepers, transporters and women-run units, and a financial-inclusion measure alongside PMJDY.
- Critics cite small loan sizes and growing stress in Shishu loans; the government points to jobs and a move away from moneylenders.
Exam angle
- MUDRA is a refinancing agency, not a bank.
- Crop loans fall under Kisan Credit Card, not PMMY; farmers get Mudra only for allied non-crop activity.
- Expect questions on slabs, Tarun Plus, launch date and ten-year totals.