New Delhi, April 02: The Pradhan Mantri Mudra Yojana (PMMY) has emerged as a significant driver of women’s financial empowerment in India, according to a recent report by the State Bank of India’s (SBI) Economic Research Department. The report highlights that women account for 68% of the scheme’s 52 crore beneficiaries, underscoring the program’s success in promoting grassroots entrepreneurship and economic independence.
Key Findings of the Report
The report indicates that over the last nine fiscal years (FY16 to FY25), the per-woman PMMY loan disbursement has grown at a Compound Annual Growth Rate (CAGR) of 13%, reaching Rs. 62,679. Meanwhile, incremental deposits per woman saw a 14% CAGR increase, reaching Rs. 95,269. This growth reflects the program’s pivotal role in fostering financial autonomy among women, particularly in rural and underrepresented areas.
PMMY has played a crucial role in integrating marginalized social groups into the financial mainstream. Notably, nearly 50% of PMMY accounts belong to SC/ST and OBC categories, with 11% from minority groups. The scheme’s focus on inclusion has allowed socially disadvantaged women to take entrepreneurial strides, thereby contributing to their economic upliftment.
Among Indian states, Bihar leads in the number of women entrepreneurs benefiting from PMMY (4.2 crore), followed by Tamil Nadu (4.0 crore) and West Bengal (3.7 crore). In terms of the proportion of women account holders, Maharashtra tops the list with 79%, followed by Jharkhand (75%) and West Bengal (73%).
The average loan ticket size under PMMY has significantly increased from Rs. 38,000 in FY16 to Rs. 1.02 lakh in FY25. This rise reflects the transition of beneficiaries from smaller loans to more substantial financial assistance, supporting the growth of micro, small, and medium enterprises (MSMEs).
The report also highlights a shift in the loan category mix. The share of Shishu loans (smallest loan category) has decreased from 93% in FY16 to 51.7% in FY25, while Kishor loans (mid-range category) have grown from 5.9% to 44.7%. This trend suggests that many initial borrowers have successfully expanded their businesses, transitioning from micro to small and medium enterprises.
Launched under the Micro Units Development and Refinance Agency (MUDRA), PMMY provides collateral-free loans of up to Rs. 20 lakh through Scheduled Commercial Banks, Regional Rural Banks, Non-Banking Financial Companies, and Micro-Finance Institutions. This structure has made the scheme highly accessible, particularly to women from low-income households.
Strengthening Women’s Entrepreneurship
The SBI report acknowledges PMMY’s transformative role in empowering women at the grassroots level. By enabling access to credit without collateral, the scheme has reduced financial barriers, allowing women to pursue small-scale business ventures.
The PMMY’s success as highlighted by the SBI report showcases its critical role in strengthening women’s financial empowerment and economic inclusion. With an increasing number of women engaging in entrepreneurship, the scheme is poised to continue as a cornerstone of socio-economic development in India.
