Statsguru: Mudra Yojana's Shishu loan accounts see a decline since FY19

The limit of loans under the Pradhan Mantri Mudra Yojana (PMMY) was doubled to Rs 20 lakh recently, inserting a new category—Tarun Plus. Launched 10 years ago, the scheme intended to provide microfinance to small entrepreneurs. However, the number of Shishu loan accounts (part of PMMY) declined in 2023-24 (FY24) compared to the pre-Covid period of FY19.

 

Even its share in the total Mudra accounts fell from 86.03 per cent in FY19 to 62.33 per cent in FY24. The share of Tarun accounts also dropped marginally. The share of Kishore accounts reached an all-time high in FY24 (chart 1).