SBI Research Report Finds Increased Mudra Loan Availment by MSMEs in Bihar, Uttar Pradesh, Odisha and North-Eastern States.
Banking & Finance
Recently in April 2025, the State Bank of India (SBI) released a report titled "The PMMY: A Decade of Audacious Dreams: Bolder Bigger and Indeed Beautiful" to mark ten years of the Pradhan Mantri Mudra Yojana (PMMY). The report revealed that the share of MUDRA (Micro Units Development and Refinancing Agency) loans in Bihar, Uttar Pradesh, Odisha and the North-East has grown significantly, reflecting a more inclusive and balanced credit distribution pattern across India.
- Out of the total 52 crore MUDRA accounts opened over the past decade, Shishu loans account for 78%, Kishor for 20%, and Tarun/Tarun Plus for 2%.
- The share of Shishu loans has decreased from 93% in FY16 to 51.7% in FY25, while Kishor loans have grown from 5.9% in FY16 to 44.7% in FY25, indicating the expansion and formalization of Micro, Small and Medium Enterprises (MSMEs).
- Bihar leads in the number of women entrepreneurs under PMMY with 4.2 crore beneficiaries, followed by Tamil Nadu with 4.0 crore and West Bengal with 3.7 crore. Maharashtra has the highest share of women account holders at 79%, followed by Jharkhand (75%) and West Bengal (73%).
Main Point :- (i) Overall, women constitute 68% of all PMMY account holders, showcasing the scheme’s strong impact on women’s empowerment at the grassroots level.
(ii) The share of PMMY loans has also grown significantly in states like Bihar (from 5.67% in FY16 to 10.97% in FY25), Uttar Pradesh (from 9.27% to 11.30%), and Odisha (from 4.24% to 4.51%).
(iii) Under PMMY, collateral-free loans of up to ₹20 lakh are provided through Member Lending Institutions in four categories—Shishu (up to ₹50,000), Kishor (₹50,000–₹5 lakh), Tarun (₹5–10 lakh), and Tarun Plus (₹10–20 lakh).
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Chairman : Challa Sreenivasulu Setty
Headquarter : Mumbai
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