One more pet scheme of the Modi government — the Pradhan Mantri Mudra Yojana (PMMY) — could notch up a record of sorts, going by the number of new entrepreneurs financed within a short span of 12 months.

In the last one year, about 1.5 crore new entrepreneurs have got support from banks and microfinance institutions (MFIs) to set up small businesses under the Yojana, which was launched last April to support small entrepreneurs.

Overall, 3.22 crore new as well as existing entrepreneurs have been sanctioned loans under PMMY. Women entrepreneurs account for about 78 per cent (or 2.52 crore) of the total number of borrowers. And this is no mean achievement.

Under PMMY, loans are given by banks and MFIs under three categories — Shishu (loans up to ₹50,000); Kishor (loans above ₹50,000 and up to ₹5 lakh); and Tarun (loans above ₹5 lakh and up to ₹10 lakh).

Loans under PMMY are given to micro-entrepreneurs for, among others, purchasing vehicles for goods and personal transport; starting/ expanding saloons, beauty parlours, gymnasium, boutiques, tailoring shops, dry cleaning, cycle and motorcycle repair shop, DTP and photocopying facilities, medical stores; for undertaking activities such as papad / pickle/ jam/ jelly making, small service food stalls and day to day catering / canteen services.

Last year, the Pradhan Mantri Jan Dhan Yojana, yet another pet scheme of the NDA government, got recognition from the Guinness Book of World Records for “most bank accounts opened (1.80 crore) in one week as part of the Financial Inclusion Campaign from August 23 to 29, 2014.” With PMMY, the Modi government seems set for an encore.

According to the latest MUDRA (Micro Units Development & Refinance Agency Ltd) data, in the last 12 months, banks and microfinance institutions have sanctioned and disbursed loans aggregating ₹1.28 lakh crore and ₹1.22 lakh crore, respectively.

Out of this, the sanctions and disbursement to women entrepreneurs are at ₹59,132 crore and ₹58,000 crore, respectively.

The data captured by MUDRA shows that almost 50 per cent of the loans under PMMY have been taken by new enterprises.

MUDRA is a wholly-owned subsidiary of the Small Industries Development Bank of India. It provides refinance to banks and microfinance institutions against the loans they have provided to micro-enterprises.

Referring to the fact that almost 95 per cent of the total universe of micro-enterprises is outside the formal credit system, Jiji Mammen, CEO, MUDRA, said PMMY was launched to ensure that credit flows to this segment. In the last one year, credit growth to this segment has been substantial.

“In 2014-15, as per our estimation, the credit that went to this segment from public sector banks was roughly about ₹33,000-34,000 crore. But today if you see the position, the credit given to this segment is almost double. So, you need to have a stiff target then only the goal of inclusive growth can be achieved,” explained Mammen.

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