A recent report by the State Bank of India (SBI) has highlighted a significant shift in the disbursement of the Pradhan Mantri Mudra Yojana (PMMY), loans over the past decade, indicating a move toward regional financial inclusion, especially in historically underserved states.
Key Findings
- Bihar’s share in PMMY loans rose from 5.67% in FY16 to 10.97% in FY25.
- Uttar Pradesh saw growth from 9.27% to 11.30%, and Odisha from 4.24% to 4.51%.
- The North-Eastern region also recorded a steady rise in loan disbursements.
Policy Impact
- The shift is attributed to targeted policy interventions aimed at enhancing financial inclusion in underserved regions and facilitating easier access to micro-credit for small entrepreneurs and businesses.
- The trend reflects a reduction in regional disparities in credit distribution.
Overall Scheme Progress
- Since inception, over ₹33 lakh crore has been sanctioned under PMMY.
- Average loan ticket size has grown from ₹38,000 in FY16 to ₹1.02 lakh in FY25—a sign of scaling up of small businesses.
State-Level Trends
- While Maharashtra, Tamil Nadu, and Karnataka remain major beneficiaries, the policy focus has shifted to states with lower financial inclusion indicators.
Role of Digital Platforms
- Platforms like ‘PSB Loans in 59 Minutes’, ‘UdyamiMitra’ and the newly introduced Unified Lending Interface (ULI) have streamlined micro-lending and improved credit accessibility in lagging regions.
Challenges & Way Forward
- Infrastructure gaps, lack of awareness, and skill development deficits still hinder full impact.
- The report emphasizes the need for continued capacity building, stronger market linkages, and holistic financial literacy effort to convert credit access into sustained economic growth.