The disbursal of business loans under Pradhan Mantri Mudra Yojana (PMMY) reached an all-time high in the financial year ended March 31, 2026 at ₹5.64 lakh crore compared to ₹5.4 lakh crore in the previous financial year. 

As per the data of Mudra, the total disbursals stood at ₹5,64,784 crore out of the total sanctioned amount of ₹5,74,389 crore. The number of loans was at 4,57,01,308.

Various categories

The categories of loans are Shishu, for loans of up to ₹50,000; Kishore, for loans above ₹50,000 and up to ₹5 lakh; and Tarun, for loans above ₹5 lakh and up to ₹10 lakh. Another variant, Tarun-plus, for loans above ₹10 lakh and up to ₹20 lakh was introduced in FY25. 

“The increase in the upper limit of Tarun category loans has resulted in an overall increase in the quantum of the loans under PMMY but also fostered repayment discipline,’’ a Mudra official told businessline. 

However, over 60 per cent of loans are still below ₹30,000 which shows the ‘popularity and efficacy’ of the scheme for livelihood generation and starting or running petty businesses, he added. 

The improvement in asset quality has been a notable feature in the last financial year, according to a senior SBI official. As per the Finance Ministry data, the total non-performing assets (NPAs) in the Mudra loans stood at around 2 per cent down significantly from 4.86 per cent five year ago. 

Financial inclusion

The financial inclusion campaign launched by the public sector banks last year along with revival of dormant accounts had also created more awareness on the Mudra loans, especially among the poor women who were now showing greater interest in the scheme has also been one of the drivers for growth in advances, say bankers. 

The Credit Guarantee Fund for Micro Units (CGFMU), the official scheme that provides guarantee cover for loans sanctioned under the Pradhan Mantri MUDRA Yojana (PMMY), is also pushing banks to lend without any concern over repayment thought the NPAs were under healthy limits.

Growth in PMMY Loans (Source: Mudra)

PMMY has disbursed over ₹40.07 lakh crore through 57.79 crore loans, strengthening the credit ecosystem for small and micro enterprises, as on March 27, 2026.

Published on April 9, 2026