A Fundamental Analysis of the Distribution of MUDRA Loan among Women Entrepreneurs in India

Abstract

The study titled “Distribution of MUDRA Loan among Women Entrepreneurs in India” explores the extent, pattern, and impact of the Pradhan Mantri MUDRA Yojana (PMMY) on promoting women’s entrepreneurship across the country. The scheme, launched in 2015, aims to provide accessible credit to micro and small enterprises through three loan categories—Shishu, Kishore, and Tarun—based on business requirements and credit needs. This study examines secondary data from various official sources to analyze the distribution trends of MUDRA loans among women borrowers from 2015–16 to 2023–24. Findings reveal that a substantial share of total disbursements has been directed toward women entrepreneurs, indicating the scheme’s success in financial inclusion and empowerment. However, the concentration of loans remains higher in the Shishu category, reflecting a predominance of micro-level enterprises with limited scale expansion. Regional disparities in loan distribution highlight the need for targeted interventions and institutional support to enhance accessibility in lagging regions. The study concludes that while MUDRA has effectively expanded credit outreach to women, greater emphasis is required on capacity building, digital literacy, and enterprise upgrading to ensure sustainable growth and transition toward higher loan categories. The research contributes valuable insights into gender-focused financial inclusion policies and underscores the transformative role of microfinance in fostering women-led entrepreneurship in India.