In six years, ₹14.96 lakh crore sanctioned under PM Mudra scheme

In the six years since its launch, the Pradhan Mantri Mudra Yojana (PMMY) has seen 28.68 crore loans to the tune of ₹14.96 lakh crore sanctioned to various beneficiaries. This scheme provides collateral-free loans of up to ₹10 lakh for income-generating activities in manufacturing, trading, services sectors and for activities allied to agriculture.

Mudra loans are provided to non-corporate and non-farm small/micro-enterprises. These loans are extended by banks, Regional Rural Banks, microfinance institutions and non-banking finance companies. They are offered in three categories, namely, ‘Shishu’, ‘Kishore’ and ‘Tarun’, which signifies the stage of growth or development and funding needs of the borrowers.

As many as 4.2 crore Mudra loans worth ₹2.66 lakh Crore were sanctioned in FY 2020-21, an official release said.

The average ticket size is about ₹52,000, and as many as 88 per cent of the loans are of the ‘SHISHU’ category. With an objective to promote entrepreneurship among the new generation aspiring youth, it is ensured that more focus is given to Shishu category loans and then Kishore and Tarun categories, the release added.

PMMY and employment generation

As per a survey conducted by the Ministry of Labour and Employment, PMMY helped in the generation of 1.12 crore net additional employment from 2015 to 2018. Out of the 1.12 crore of the estimated increase in employment, Women accounted for 69 lakh (62 per cent).

Almost 24 per cent of the loans have been given to new entrepreneurs and 68 per cent to women entrepreneurs. About 51 per cent of the loans have been disbursed to SC/ST/OBC borrowers. SCs and STs constitute 22.53 per cent of the borrowers, and OBCs constitute 28.42 per cent of the borrowers, the release added. Minority community borrowers constitute 11 per cent of the loans issued, it added..

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