Archive · 7 Sep 2025
Mudra Loan Demand Rises, Supporting Small Businesses in India
Imagine a program in India called PMMY that gives small loans to help people start or grow their own little businesses.
These are like tiny loans for things like fixing bikes or running a small shop.
The most common loans are the smallest ones, called Shishu loans, which are for up to 50,000 rupees.
Last year, lots of these loans were given out – over 5.52 lakh crore rupees worth!
A lot of people are using these loans to become self-employed.
These loans help with activities like setting up cycle repair shops, flour mills, or electrical appliance repair.
While most people are paying back their loans, a small percentage are having trouble, about 9.81% of the loans are not being paid back.
Demand for small business loans under PMMY is increasing.
The average loan amount is ₹28,699.
Shishu category loans make up 79% of total PMMY loans.
₹5.52 lakh crore in loans were disbursed in the last financial year.
Loans support various small business activities, especially in rural areas.
- Who
- Small business owners and entrepreneurs.
- What
- Increased demand for petty business loans under the Pradhan Mantri Mudra Yojana (PMMY).
- When
- The data reflects the situation up to March 2025. The loan scheme was launched in April 2015.
- Where
- India.
- Why
- To finance income-generating small business enterprises.
- Loan Scheme
- Pradhan Mantri Mudra Yojana (PMMY)
- Average Loan Size
- ₹28,699
- Total Loans Disbursed (FY)
- ₹5.52 lakh crore
- Shishu Category Loans
- 79% of total PMMY loans
- Launch Date
- April 2015
- NPA Ratio (March 2025)
- 9.81%