The finance ministry is likely to fix the target under the Pradhan Mantri Mudra Yojana for FY26 in the coming weeks and is expected to keep it around the same level of last fiscal at about Rs 5 lakh crore – Rs 6 lakh crore. About 5 crore loans are expected to be sanctioned.
Launched on April 8, 2015, the flagship scheme aims to provide collateral-free institutional credit of up to Rs 20 lakh to micro and small businesses through Member Lending Institutions (MLIs). The Pradhan Mantri Mudra Yojana (PMMY) scheme, which has now completed a decade, has sanctioned over 52.37 crore loans amounting to Rs. 33.65 lakh crore.
Approximately 20% of the loans have been given to new entrepreneurs and accounts. Significantly, 68% of the loans have been granted to women entrepreneurs, and 50% have gone to SC/ST/OBC borrowers.
Speaking to reporters on Monday, M Nagaraju, secretary, department of financial services said that the average loan size has increased to Rs 1.05 lakh now from Rs 40,000 in 2015 when it was started. He also underlined that non-performing assets under the scheme remain low at 3.6% on average in the last 10 years of public sector banks. Inclusive of all lending institutions, NPAs under the scheme are even lower at 2.2%.
“Bad loans under the scheme have been on a declining trend over the years,” he underscored. As per data, gross NPAs between April and December 2025 for the scheme was 2.21% as against 2.1% in FY24. Prior to that in FY23, gross NPAs were at 2.58%, in FY22 at 3.1% and in FY21 at 3.6%.
Loans under the scheme are available through four loan categories including Shishu (loans up to Rs 50,000), Kishor (loans between Rs 50,000 and Rs 5 lakh), Tarun (loans between Rs 5 lakh and Rs 10 lakh) and Tarun Plus (loans up to Rs 20 lakh for entrepreneurs who have successfully repaid previous loans under the ‘Tarun’ category).
As per official data, the official ticket size for loans in Shishu and Tarun categories has increased over the last 10 years. In the case of Shishu loans, the average ticket size increased to Rs 37,403 in FY25 from Rs 19,411 in FY16. Similarly, in Tarun loans, the average ticket size increased to Rs 8,46,313 in FY25 from Rs 7,67,555 in FY16.
