Abstract

The Pradhan Mantri Mudra Yojana (PMMY), launched in 2015, is a flagship initiative by the Government of India to promote micro and small enterprises through collateral-free loans. This study investigates loan category preferences (Shishu, Kishor, Tarun) among 500 PMMY beneficiaries across four Indian states—Chhattisgarh, Maharashtra, Uttar Pradesh, and Odisha—with a particular emphasis on gender-based patterns. Using a mixed-methods approach combining descriptive statistics and inferential analysis (chi-square tests), the research reveals significant gender-linked differences in loan preferences. Women predominantly opt for Shishu loans (up to ₹50,000), reflecting their focus on smaller-scale enterprises or constraints in accessing higher credit slabs. In contrast, men are more likely to secure Kishor loans (₹50,001–₹5,00,000), indicative of greater risk-taking capacity or better access to banking networks. The analysis also uncovers state-specific variations, with Odisha and Chhattisgarh demonstrating more balanced gender participation compared to Uttar Pradesh and Maharashtra. These findings highlight the dual nature of PMMY’s impact: it fosters financial inclusion for women but also reveals structural barriers limiting their access to larger loans. The study proposes actionable policy recommendations, including enhanced financial literacy programs, gender-sensitive banking practices, and targeted outreach to address these disparities. By bridging gender gaps, PMMY can further amplify its role in promoting inclusive entrepreneurship and sustainable economic growth across India.