Home India FINANCE Parliament Question: Pradhan Mantri Mudra Yojana (PMMY)...
Date: 2025-12-15 Category: Not Applicable State: Union Government Country: India

Parliament Question: Pradhan Mantri Mudra Yojana (PMMY)

Issued by FINANCE · Not Applicable

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Executive Summary & Key Takeaways

**Executive Summary** This document presents the Indian government's response to an unstarred question regarding the Pradhan Mantri Mudra Yojana (PMMY). It details the impact of PMMY on employment generation (2015-2018), provides state-wise and category-wise beneficiary data, and addresses concerns about Non-Performing Assets (NPAs) under Mudra loans. The document also outlines the monitoring mechanisms in place to ensure effective loan sanctioning and utilization. The information is current as of December 15, 2025. **Key Points / Main Content** * **Employment Generation:** * The Ministry of Labour and Employment (MoLE) conducted a national survey to estimate employment generation under PMMY. * PMMY helped generate 1.12 crore net additional employment between 2015 and 2018. * **Beneficiary Data:** * State-wise and category-wise (Shishu, Kishor, Tarun & Tarun Plus) beneficiary data, including for Tamil Nadu, is provided for the last five years (2020-2025) in the attached Annexure. * **Non-Performing Assets (NPAs):** * The NPA rate under PMMY for Public Sector Banks (PSBs) as of June 2025 is 3.31% of the disbursed amount. * PMMY caters to individuals outside the formal credit system due to a lack of collateral or business experience. * **Monitoring Mechanisms:** * The government has adopted monitoring mechanisms for effective sanctioning and loan utilization. * Lenders set annual indicative targets and conduct periodic performance reviews. * Lenders undertake: * Pre-sanction and post-sanction field visits. * Collection and verification of stock statements. * Periodic monitoring of cash flow data. * Monitoring of early warning signals (EWS). * Constant follow-up and increased frequency of customer connects. **Impact Analysis** **Stakeholder: First-time Entrepreneurs** * **Impact:** They are able to access credit more easily through the PMMY scheme, even without collateral or extensive business experience. * **Action Required:** They need to be aware of the monitoring mechanisms in place and ensure accurate reporting to avoid potential issues. **Stakeholder: Public Sector Banks (PSBs)** * **Impact:** PSBs face a higher risk of NPAs under PMMY loans (3.31% as of June 2025) due to the scheme's focus on first-time entrepreneurs. * **Action Required:** PSBs must implement and adhere to the government's monitoring mechanisms to ensure effective loan sanctioning, utilization, and recovery. **Stakeholder: Ministry of Finance** * **Impact:** The Ministry is responsible for evaluating the impact of the PMMY scheme and addressing concerns regarding loan utilization and repayment capacity. * **Action Required:** They need to continue to monitor the NPA rates under PMMY and consider any necessary restructuring to the scheme based on its performance.

Key Entities Referenced

Pradhan Mantri Mudra Yojana (PMMY): A scheme to provide loans to non-corporate, non-farm small/micro enterprises. Ministry of Finance: The ministry responsible for finance in India, which is answering questions about the PMMY scheme. Tamil Nadu: A state in India, specifically mentioned in the question regarding data on PMMY beneficiaries.
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Government of India Ministry of Finance Department of Financial services LOK SABHA UNSTARRED QUESTION NO. 2323 ANSWERED ON MONDAY, DECEMBER 15, 2025/ AGRAHAYANA 24, 1947 (SAKA) Pradhan Mantri Mudra Yojana (PMMY) 2323. SHRI MALAIYARASAN D: Will the Minister of FINANCE be pleased to state: (a) whether the Government has evaluated the actual impact of the Pradhan Mantri Mudra Yojana (PMMY) on employment generation, especially among first-time entrepreneurs; (b) if so, the details of such evaluation along with State-wise and category-wise (Shishu, Kishor, Tarun) data on the number of beneficiaries from Tamil Nadu during the last five years; (c) whether instances of high Non-Performing Assets (NPAs) have been reported under Mudra loans, particularly from public sector banks; (d) if so, the details thereof and the steps taken to strengthen credit appraisal and recovery mechanisms; and (e) whether the Government proposes to review or restructure the scheme in light of concerns about loan utilisation, repayment capacity and monitoring and if so, the details thereof? ANSWER MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY) a) and (b): Ministry of Labour and Employment (MoLE) had 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). The state and category-wise (Shishu, Kishor, Tarun & Tarun Plus) data on the number of beneficiaries (loans) for the last five years, including Tamil Nadu, is placed at Annexure. (c) to (e): PMMY mainly caters to those segment of the society which have been outside the formal credit system because of lack of collaterals, business experience etc. The NPA rate under PMMY for Public Sector Banks (PSBs), as on June, 2025, is 3.31% (against the disbursed amount). This is mainlybecause the loans under the scheme are collateral free and are often provided to new business entrepreneurs who may lack business experience and expertise. The monitoring mechanisms adopted by the Government to ensure effective sanctioning and utilisation of loans disbursed by Member Lending Institutions (MLIs) under Pradhan Mantri Mudra Yojana (PMMY) include setting of annual indicative targets and periodic reviews of the performance. In addition, lenders undertake: i. pre-sanction field visits to verify details as provided in the loan applications by the borrowers and post-sanction visits for verification of assets created out of the loan amount; ii. collection of stock statement of the Unit of the borrower and its periodic verification for fixing Drawing Power (DP) for working capital for a particular period; iii. periodic monitoring of cash flow data to analyse from where the Unit receives its money (cash inflow) and how it spends (cash outflow); iv. monitoring of early warning signals (EWS) which throw up alerts for MLIs; and v. constant follow up and increased frequency of customer connects. *****Annexure Annexure for part (a) and (b) of Lok Sabha Unstarred Question No. 2323 for 15.12.2025 regarding "Pradhan Mantri Mudra Yojana" Statewise ( for last five years (From FY 2020-21 To 2024-25)) No. of Loan A/cs S.No. State/ U.T. Name Shishu Kishor Tarun Tarun Plus 1 Andaman and Nicobar Islands 4,202 8,479 4,307 2 2 Andhra Pradesh 39,54,229 22,76,683 4,32,347 8,770 3 Arunachal Pradesh 47,595 37,001 7,439 20 4 Assam 26,27,889 16,56,687 1,25,610 232 5 Bihar 2,61,50,975 1,14,03,446 3,20,986 1,163 6 Chandigarh 43,600 28,563 11,611 17 7 Chhattisgarh 35,49,517 14,84,005 1,30,617 201 Dadra and Nagar Haveli & Daman 8 and Diu 10,666 11,437 3,934 13 9 Delhi 8,54,951 3,89,415 1,33,114 466 10 Goa 89,395 76,592 20,287 31 11 Gujarat 53,33,354 26,68,638 3,33,977 1,030 12 Haryana 33,04,243 16,98,604 1,75,042 387 13 Himachal Pradesh 2,48,234 3,18,377 79,894 97 14 Jharkhand 69,90,046 21,71,233 1,38,697 368 15 Karnataka 1,73,11,693 81,10,375 5,15,279 813 16 Kerala 56,45,473 30,24,072 2,35,444 1,270 17 Lakshadweep 3,261 4,992 461 - 18 Madhya Pradesh 1,21,25,986 44,18,805 3,85,545 536 19 Maharashtra 1,60,61,287 61,40,345 7,05,426 1,251 20 Manipur 1,47,941 49,949 7,991 25 21 Meghalaya 84,265 55,329 9,639 15 22 Mizoram 46,378 44,364 11,948 8 23 Nagaland 42,176 52,027 8,939 24 24 Odisha 1,37,97,007 37,70,891 2,15,450 504 25 Pondicherry 3,48,036 2,00,381 9,358 6 26 Punjab 35,46,590 14,76,574 1,87,125 380 27 Rajasthan 84,20,692 41,47,845 4,14,425 954 28 Sikkim 33,717 39,895 5,071 12 29 Tamil Nadu 1,85,46,665 97,10,353 4,62,047 1,294 30 Telangana 24,89,159 11,51,546 2,45,471 7,358 31 Tripura 10,04,080 6,86,944 17,298 40 Union Territory of Jammu 32 and Kashmir 4,09,699 10,67,242 1,76,664 42 33 Union Territory of Ladakh 3,781 37,926 8,139 5 34 Uttar Pradesh 2,20,03,219 82,17,927 7,15,986 1,771 35 Uttarakhand 11,68,360 6,11,995 83,831 263 36 West Bengal 1,79,00,860 98,42,118 4,69,729 1,059 Total 19,43,49,221 8,70,91,055 68,09,128 30,427 Source: As per data uploaded by Member Lending Institutions on Mudra Portal *****

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