₹33 Lakh Crore & Counting! MUDRA Loans Are Fueling India’s Small Biz Surge—Will Yours Ride the Wave?

Image Source: MP Bhulekh

The Pradhan Mantri MUDRA Yojana (PMMY) has crossed a historic milestone, with more than ₹33.65 lakh crore having been sanctioned to more than 52.5 crore micro and small businesspersons since 2015—when loan limit has now been raised, new categories introduced, and coverage for crores of MSMEs expanded.

Key Points:

July 2025 Record Disbursement:
Surpassing ₹33.65 lakh crore released.
Over 52.5 crore loans disbursed after 2015.
FY25 disbursement target: ₹5–6 lakh crore.
Higher Loan Sizes & Products
Loan amount increased to ₹20 lakh (from ₹10 lakh) from October 2024.
Launching new "Tarun Plus" segment for high-performing prior borrowers (₹10–20 lakh segment).

Empowering Entrepreneurs:

68% of the recipients are women.
50% of these accounts belong to SC/ST/OBC entrepreneurs.
Average loan size rose to ₹1.05 lakh in FY25.
Top states: Tamil Nadu, Uttar Pradesh, Karnataka, West Bengal, Bihar.

Easy Eligibility & Procedure

Available to private & public limited companies, partnerships, individuals and other legal persons.
No collateral up to loans of ₹20 lakh.
Must not have any existing default of a loan; good credit record; genuine proof of identification, business documents, and a good business plan.

Focus Areas:

Manufacturing, trade, services, food processing, agriculture-allied.
Transport, community services, retail, textile, and equipment loans were covered.

Increased Credit Discipline:

Mudra loan NPA proportion fell to 3.4% in 2024–25, depicting improved repayment and good monitoring.

How to Check Your Eligibility

Should be aged between 18–65 years.
Should not be a wilful defaulter to financial institutions/banks.
Business has to fall under qualifying industries and submit the required documents like KYC, business documents, and bank statements.
Apply online on the website of MUDRA or through bank branches.

What's New in 2025?

Digital infrastructure advancements include easy, paperless disbursals and speedy customer onboarding.
Borrowers who repay their initial Tarun loan are eligible for the new, increased limit immediately.
It has also sought even greater objectives in the period of FY2025–26, reaffirming its pledge to MSME development and creation of employment.

Source:

Press Information Bureau, Government of India Ministry of Finance statistics, June 2025 Financial Services and MSME Portals