Overview and Trends in Pradhan Mantri Mudra Yojna

Sudhir; Satyajit Mallick; Eeshika Dahar

doi:10.71097/IJSAT.v16.i2.5732

Overview and Trends in Pradhan Mantri Mudra Yojna

Author(s)	Sudhir, Satyajit Mallick, Eeshika Dahar
Country	India
Abstract	This research analyses the implementation trends of the Pradhan Mantri Mudra Yojana (PMMY) from 2016 to 2023, a scheme launched to provide collateral-free credit up to ₹10 lakh (later ₹20 lakh) to non-corporate, non-farm micro-units in India. The PMMY, which aims to promote financial inclusion and self-employment, operates through the Micro Units Development and Refinance Agency (MUDRA) and a network of lending institutions. The study utilizes percentage analysis to evaluate changes in disbursement patterns across Shishu (loans ≤ ₹50,000), Kishore (₹50,001-₹5 lakh), and Tarun (₹5-₹10 lakh) categories. Findings indicate a dramatic growth in overall loan disbursements, formalizing and funding previously underserved sectors, with a total of 28.89 crore loans disbursed. The scheme has shown remarkable progress in outreach, particularly among women entrepreneurs (68% of accounts) and disadvantaged groups (51% to SC/ST/OBC borrowers). While the "Shishu" category initially dominated, there's a growing share of Kishore and Tarun loans over time, reflecting increasing credit needs. The study also notes a decline in loan disbursements during the COVID-19 pandemic, followed by a strong rebound, demonstrating the scheme's resilience. Despite its success in enhancing formal credit access and fostering business creation, particularly for women, some critiques suggest that PMMY has not dramatically shifted overall credit structures or significantly accelerated growth beyond pre-existing trends. Challenges include persistent issues in borrower awareness and inter-scheme coordination, along with rising Non-Performing Assets (NPAs) in the Shishu segment of public-sector banks. The research concludes that PMMY has significantly widened outreach and promoted inclusive lending, emphasizing the need for continued support for small borrowers, facilitation of loan progression, targeted outreach in underserved areas, and improved monitoring.
Keywords	Pradhan Mantri Mudra Yojana (PMMY), Micro and Small Firms (MSEs), Financial Inclusion, Non-Performing Assets (NPAs), Self-employment, Economic activity
Field	Sociology > Economics
Published In	Volume 16, Issue 2, April-June 2025
Published On	2025-05-30
DOI	https://doi.org/10.71097/IJSAT.v16.i2.5732
Short DOI	https://doi.org/g9mvt4

View / Download PDF File

doi

CrossRef DOI is assigned to each research paper published in our journal.

IJSAT DOI prefix is
10.71097/IJSAT

Downloads

Research Paper Format Copyright Permission Form and Undertaking Form Cover Page Vol 15 Isu 4 Cover Page Vol 15 Isu 3 Cover Page Vol 15 Isu 2

All research papers published on this website are licensed under Creative Commons Attribution-ShareAlike 4.0 International License, and all rights belong to their respective authors/researchers.

CC-BY-SA

About IJSAT Fees & Payment Current Issue Publication Archive	Submit Research Paper Track Submission Status Publication Guidelines Publication Ethics Peer Review & Plagiarism	Join as a Reviewer Editors & Reviewers Reviewer Referral Program Get Reviewer Membership Certi.	Website/Journal Policies Usage Policy Content Policies Privacy Policy

Contact Us	Message on WhatsApp	+91-9687-182-185	editor@ijsat.org

International Journal on Science and Technology

A Widely Indexed Open Access Peer Reviewed Multidisciplinary Bi-monthly Scholarly International Journal

Overview and Trends in Pradhan Mantri Mudra Yojna

Share this