Mudra Yojana: Rs 20.43 lakh crore loan disbursed since inception in 2015

More than 37.76 crore collateral-free loans amounting to over Rs 20.43 lakh crore have been disbursed to small businesses and entrepreneurs across the country under the Pradhan Mantri Mudra Yojana (PMMY) scheme since its inception in April 2015, the government data shows.

As per data uploaded by the Pradhan Mantri Mudra Yojana (PMMY) by Member Lending Institutions (MLIs) on Mudra portal, as on 25th November 2022, more than 37.76 crore loans amounting to over Rs 20.43 lakh crore have been disbursed since inception of the Scheme in April 2015, the Union Ministry of Finance said.

As per a survey conducted by the Ministry of Labour and Employment, PMMY scheme helped in generating 1.12 crore net additional employment during a period of approximately 3 years (i.e. from 2015 to 2018).

At an overall level, Shishu category of loan constitutes about 66 per cent of share among additional employment generated by establishments owned by MUDRA beneficiaries followed by Kishore (19 per cent) and Tarun (15 per cent) categories respectively.

Prime Minister Narendra Modi launched the Pradhan Mantri Mudra Yojana on 8th April 2015.

The loans are extended under the MUDRA scheme by banks, Non-Banking Financial Companies (NBFCs) and Micro Financial Institutions (MFIs) and other financial intermediaries, in three categories:

  • Shishu (covering loans upto Rs 50,000);
  • Kishore (covering loans above Rs 50,000 and upto Rs 5 lakh);
  • Tarun (covering loans above Rs 5 lakh and upto Rs 10 lakh)

The names ‘Shishu’, ‘Kishore’ and ‘Tarun’ signify the stage of growth/development and funding needs of a micro business unit and entrepreneur. It also provides a reference point for the next phase of graduation/growth for the entrepreneur to aspire for. The type of businesses covered under the scheme is quite comprehensive.

Giving more details about the scheme, the Union Finance Ministry stated that under PMMY, collateral-free institutional credit up to Rs 10 lakh is provided by Member Lending Institutions (MLIs) i.e. Scheduled Commercial Banks (SCBs), Regional Rural Banks (RRBs), Non-Banking Financial Companies (NBFCs) and Micro Finance Institutions (MFIs). Any individual, who is otherwise eligible to take a loan and has a business plan for small business enterprise can avail loan under the Scheme. He/She can avail loans for income generating activities in the manufacturing, trading, services sector and also for activities allied to agriculture across three loan products, viz. Shishu (loans up to Rs. 50,000), Kishore (loans above Rs. 50,000 and up to Rs. 5 lakh) and Tarun (loans above Rs. 5 lakh and up to Rs. 10 lakh), the ministry said.

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