New Delhi: Odisha is among the states that has witnessed a growth in the disbursement of Pradhan Mantri Mudra Yojana (PMMY) loans over the past 10 years, a State Bank of India (SBI) report states.
PMMY extends loans to small and medium enterprises. The report mentions a notable shift in loan disbursement over the past 10 years, with rising focus on states with historically lower financial inclusion.
The SBI report on ten years of PMMY states that the share of MUDRA loans in Odisha, Bihar, Uttar Pradesh, and the northeastern states have grown significantly, indicating a more inclusive credit distribution pattern.
While Odisha’s share in PMMY loans has climbed to 4.51 per cent from 4.24 per cent, Bihar has shown an increase from 5.67 percent in FY16 to 10.97 percent in FY25. This is nearly a two-fold hike.
Uttar Pradesh too has witnessed a rise from 9.27 percent to 11.30 percent. The northeastern states, which had traditionally seen lower credit penetration, also recorded a steady rise in loan disbursement.
The SBI report has attributed this shift to targeted policy interventions, aimed at financially under-served states, which has helped easier access to micro-credit for small businesses and entrepreneurs. “The growing share of PMMY loans in these states signifies a move towards addressing regional financial disparities,” the report states.