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Banks have provided Rs 3 lakh crore MUDRA loans to public till now


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In a positive development for small businesses, loans extended under the Pradhan Mantri Mudra Yojana (PMMY) have reached an unprecedented ₹3-lakh crore in December 2023, reflecting a notable 16 per cent year-on-year growth.

What is MUDRA scheme?

The Pradhan Mantri Mudra Yojana launched in 2015 aims at providing credit of upto Rs 10 lakh to small entrepreneurs and act as a regulator for Micro-Finance Institutions (MFIs). Mudra targets young educated or skilled workers and entrepreneurs including women entrepreneurs. The loans are easily accessible in three categories- Shishu, Kishore and Tarun.

  • Shishu: Loans sanctioned under the PMMY scheme up to Rs. 50,000
  • Kishore: Loans sanctioned under the PMMY scheme from Rs. 50,001 up to Rs.5 Lakhs
  • Tarun: Loans sanctioned under the PMMY scheme Rs. 5,00,001 up to Rs. 10 Lakhs

PMMY Performance: 2022-23

Overall PerformanceDOWNLOAD 
State wise PerformanceDOWNLOAD 
Bank wise PerformanceDOWNLOAD 

Loan Statistics and Growth:

As of December 22, 2023, a week before the end of the third quarter of the fiscal year, the sanctioned loans amounted to ₹2,99,457 crore. This marks a substantial increase from ₹2.58-lakh crore during the same period in the previous fiscal year. Provisional figures indicate that the cumulative disbursement has already surpassed ₹3-lakh crore by December 29.

Key Contributors and Trends:

Government data highlights the significant role of women applicants in driving the growth of Mudra loans, constituting around 70 per cent of the total sanctioned loans. Furthermore, 25 per cent of these loans have been extended to first-time petty entrepreneurs.

Recent reports from SBI Research underscore positive trends in the disbursal of Tarun and Kishor category loans, addressing the ‘missing middle problem’ in the growth of enterprises. The portfolio exhibits a balanced distribution across retail trade, services, and manufacturing sectors. The operational process emphasizes digitalization at both pre and post disbursal stages, promoting efficiency.

Risk Mitigation and Guarantees:

Economist B Yerram Raju emphasizes that banks face minimal risks in Mudra loans due to robust systems, entrepreneur-driven initiatives, and full guarantees. The system-driven approach, coupled with a lack of engagement with entrepreneurs both pre and post Mudra loan disbursement, contributes to risk mitigation.

This surge in Mudra loans presents a promising outlook for small businesses, providing crucial financial support and fostering entrepreneurship, especially among women and first-time entrepreneurs.

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