PM Mudra Yojana: How it is fueling Financial Independence Among Women

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Explore how Pradhan Mantri Mudra Yojana (PMMY) is boosting women's financial independence, with 68% of account holders being women. Learn about its impact, benefits, and success stories.

  • Empowering Women: Pradhan Mantri Mudra Yojana (PMMY) significantly boosts women’s financial independence, with women holding 68% of the 52 crore accounts.
  • Financial Growth: The scheme has led to substantial financial improvements for women borrowers, with increased loan disbursements and deposits over the past decade.
  • Inclusive Banking: PMMY promotes inclusivity by supporting SC/ST/OBC communities and minority groups, fostering financial independence across various social strata.

Pradhan Mantri Mudra Yojana (PMMY) is proving to be a game-changer for women’s financial empowerment in India. Recent reports indicate that 68 percent of 52 crore account holders under PMMY are women, highlighting its significant impact. This surge in women’s participation has translated into tangible improvements in their financial well-being over the past decade.

How Pradhan Mantri Mudra Yojana Empowers Women Financially

Pradhan Mantri Mudra Yojana is not just about numbers; it’s about transforming lives and fostering a spirit of entrepreneurship among women. An SBI Economic Research Department report highlights that PMMY has effectively become a powerful tool for women’s empowerment at the grassroots level. Here’s how:

  • Increased Loan Disbursements: Over the last nine fiscal years (FY25 over FY16), the per woman disbursement amount under PMMY has increased by a Compound Annual Growth Rate (CAGR) of 13 percent, reaching Rs 62,679.
  • Rise in Deposits: Simultaneously, the per woman incremental deposits have increased by a CAGR of 14 percent, hitting Rs 95,269.

These figures clearly indicate that women are not only availing loans but also responsibly managing and growing their savings, showcasing enhanced financial literacy and stability.

PMMY: An Inclusive Scheme for All

One of the standout features of Pradhan Mantri Mudra Yojana is its focus on inclusivity. The scheme has successfully brought entrepreneurship to social groups that were previously excluded from financial opportunities.

  • Support for Marginalized Communities: Nearly half of the 52 crore PMMY accounts belong to individuals from Scheduled Castes (SC), Scheduled Tribes (ST), and Other Backward Classes (OBC).
  • Women Entrepreneurship: A significant 68 percent of total account holders are women entrepreneurs, underscoring the scheme’s role in promoting female-led businesses.
  • Minority Inclusion: Additionally, 11 percent of account holders belong to minority groups, further demonstrating PMMY’s commitment to reaching diverse sections of society.

State-wise Analysis of Women Entrepreneurs

Across different states, Pradhan Mantri Mudra Yojana has seen varying levels of success in fostering women entrepreneurship. Here are some key highlights:

  • Bihar: Leads with the largest number of PMMY women entrepreneurs, totaling 4.2 crore.
  • Tamil Nadu: Follows closely with 4.0 crore women entrepreneurs.
  • West Bengal: Ranks third with 3.7 crore women entrepreneurs.
  • Maharashtra: Boasts the largest share of women account holders at 79 percent of the total.
  • Jharkhand: Comes in second with 75 percent women account holders.
  • West Bengal: Shows a strong presence with 73 percent women account holders.

Loan Trends and Scheme Evolution

Pradhan Mantri Mudra Yojana has evolved significantly since its inception, with notable changes in loan sizes and types.

  • Increase in Average Ticket Size: The average loan size has nearly tripled, from Rs 38,000 in FY16 to Rs 1.02 lakh in FY25. It was Rs 72,000 in FY23.
  • Total Sanctioned Loans: As of February 28, 2025, the scheme has sanctioned 52.07 crore loans, amounting to Rs 33.19 lakh crore.

Under PMMY, loans are categorized into three types:

  • Shishu: Loans up to Rs 50,000
  • Kishor: Loans between Rs 50,001 and Rs 5 lakh
  • Tarun: Loans between Rs 5 lakh and Rs 10 lakh

The Micro Units Development and Refinancing Agency (MUDRA) supports the development and refinancing of micro units under PMMY. The scheme ensures that collateral-free institutional credit up to Rs 10 lakh is provided by Member Lending Institutions (MLIs), including Scheduled Commercial Banks (SCBs), Regional Rural Banks (RRBs), Non-Banking Financial Companies (NBFCs), and Micro Finance Institutions (MFIs).

Shifting Trends in Loan Categories

There has been a noticeable shift in the distribution of loan categories over the years:

  • Decline in Shishu Loans: The share of Shishu loans has decreased from 93 percent in FY16 to 51.7 percent in FY25.
  • Increase in Kishor Loans: Conversely, the share of Kishor loans has increased significantly, from 5.9 percent in FY16 to 44.7 percent in FY25.

This trend indicates that many Shishu account holders have grown their businesses and are now eligible for Kishor loans with higher limits, suggesting a positive progression and expansion of MSME units.

In summary, Pradhan Mantri Mudra Yojana has made substantial strides in empowering women and fostering financial inclusion. By providing access to credit and promoting entrepreneurship, PMMY has enabled women to become financially independent and contribute significantly to India’s economic growth.

For more detailed information, visit the official MUDRA website.

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