PMMY: A Powerful Instrument for Women Empowerment at the Grassroots Level, Says SBI Report
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Synopsis
The SBI report highlights a significant increase in women's participation in the Pradhan Mantri Mudra Yojana (PMMY), with 68% of account holders being women. This has improved their financial standing over the past decade, showcasing PMMY as a vital tool for grassroots women empowerment.
Key Takeaways
- 68% of PMMY account holders are women.
- Per woman disbursement rose to Rs 62,679.
- Average loan size increased from Rs 38,000 to Rs 1.02 lakh.
- Bihar leads with 4.2 crore women entrepreneurs.
- 52.07 crore loans sanctioned totaling Rs 33.19 lakh crore.
New Delhi, April 2 (NationPress) The rise in women's involvement in the Pradhan Mantri Mudra Yojana (PMMY) — with 68 percent of the 52 crore account holders being women — has significantly improved the financial circumstances of women borrowers over the past 10 years, according to a report released on Wednesday.
Between FY25 and FY16, the average PMMY disbursement per woman saw a CAGR of 13 percent reaching Rs 62,679, while the average incremental deposits per woman surged with a CAGR of 14 percent to Rs 95,269. This positions PMMY as a pivotal tool for women empowerment at the grassroots level, as highlighted by the State Bank of India’s (SBI) Economic Research Department.
The report commended PMMY for its impact on empowering socially disadvantaged groups, fostering a genuine sense of financial independence.
Approximately half of the 52 crore PMMY accounts are held by individuals from SC/ST and OBC categories. Additionally, 68 percent of the total account holders are women entrepreneurs, while 11 percent belong to minority communities.
“Among the states, Bihar boasts the highest number of PMMY women entrepreneurs at 4.2 crore, followed closely by Tamil Nadu at 4.0 crore and West Bengal at 3.7 crore. Maharashtra leads in terms of women account holders with 79 percent, followed by Jharkhand at 75 percent and West Bengal at 73 percent,” the SBI report noted.
The average loan size has nearly tripled, increasing from Rs 38,000 in FY16 to Rs 72,000 in FY23, and reaching Rs 1.02 lakh in FY25.
As per the latest government statistics, under PMMY, 52.07 crore loans totaling Rs 33.19 lakh crore have been approved since the scheme's launch (as of February 28, 2025).
Launched under the Micro Units Development and Refinancing Agency (MUDRA), PMMY is designed to facilitate development and refinancing activities related to micro units.
PMMY guarantees collateral-free institutional credit up to Rs 20 lakh provided by member lending institutions (MLIs), which include Scheduled Commercial Banks (SCBs), Regional Rural Banks (RRBs), Non-Banking Financial Companies (NBFCs), and Micro Finance Institutions (MFIs).
The SBI report indicated that the share of Shishu accounts has decreased from 93 percent in FY16 to 51.7 percent in FY25, while the share of Kishor accounts has risen to 44.7 percent in FY25 from 5.9 percent in FY16.
“This clearly indicates that some Shishu accounts have matured and are now accessing Kishor loans with higher limits, suggesting that MSME units are expanding,” the report concluded.
