As per data uploaded by Member Lending Institutions (MLIs) on Mudra portal, as on 26.11.2021, over 32.11 crore loans involving a sanctioned amount of ₹ 17 lakh crore with disbursement of ₹ 16.50 lakh crore have been extended under Pradhan Mantri Mudra Yojana (PMMY), since its inception in April, 2015. This was stated by Union Minister of State for Finance Dr Bhagwat Kisanrao Karad in a written reply to a question in Rajya Sabha today.

The Minister stated that year-wise details of loans provided under different categories of PMMY viz. Shishu (loans up to ₹ 50,000), Kishore (loans from ₹ 50,001 to ₹ 5 lakh) and Tarun (loans from ₹ 5 lakh to ₹ 10 lakh) are ANNEXED.

Listing out a number of studies undertaken to evaluate the impact of PMMY, the Minister stated :-

1. An independent assessment of PMMY was undertaken by ‘”MicroSave”, a financial inclusion consulting firm in 2016-17. The key findings, inter-alia, include:-
   • No requirement of a guarantor or collateral, simple documentation and quick processing, and proactive approach of lenders make PMMY loans attractive to borrowers;
   • PMMY loans have helped borrowers to enhance scope and profit of business; and
   • Shishu loans have helped to unlock the business potential of small shop owners and vendors by meeting their working capital requirement.

2. IFMR Finance Foundation (IFF) also conducted a study in 2016-17 to understand the impact of PMMY. The key findings of the study, inter-alia, are:
   • PMMY has led to significant growth in bank credit to MSMEs, particularly loans below ₹ 2 lakh. Micro Finance Institutions (MFIs) are working with banks to increase reach of loans below ₹ 2 lakh;
   • Average size of loans given by banks in Shishu category has increased significantly (about 50%) in 2016-17. Data suggests that existing clients are likely to get larger loans. For MFIs, increase in loan size in Kishore category has been observed;
   • PSBs and RRBs have better awareness of key features of PMMY loans; and
   • Banks have significantly liberalised criteria to reach out to more borrowers.

3. Ministry of Labour and Employment (MoLE) has conducted a large sample survey at the national level to estimate employment generation under PMMY. As per the survey results, PMMY helped in generation of 1.12 crore net additional employment during a period of approximately 3 years (i.e. from 2015 to 2018). At an overall level, Shishu category of loan has about 66% of share among additional employment generated by establishments owned by MUDRA beneficiaries followed by Kishore (19%) and Tarun (15%) categories respectively.

Small business credit access under PMMY expanded through collateral-free, simplified loans, boosting outreach and employment generation. Pradhan Mantri Mudra Yojana has extended extensive microcredit support across three categories-Shishu, Kishore, and Tarun-built on no-collateral, simplified documentation and quick processing. Independent studies found these features increased borrower uptake, helped expand business scope and profits, drove growth in bank credit to MSMEs with larger loan sizes in Shishu, and led to measurable net additional employment attributable to the scheme, with Shishu accounting for the largest share of employment gains.