The disbursal of small business loans under Pradhan Mantri Mudra Yojana (PMMY) has shown significant growth in the current financial year so far, crossing the ₹1-lakh crore mark. As of August 26, loans worth ₹1,08,632 crore have been disbursed.

“The disbursal amount in the first five months of the current financial year is higher than the quantum of disbursal in the first half of the last fiscal year,’‘ a senior MUDRA official told BusinessLine. At the end of September 2021, about ₹98,000 crore loans were disbursed under the PMMY scheme. 

According to bankers, the growth trend in Mudra has been quite noticeable from the first quarter of current fiscal itself. “Mudra had a good start in the first quarter with disappearance of severe Covid-19 and normalisation of economic activity,’‘ said a senior official with State Bank of India.

In the first quarter ended June 30 (FY23), all agencies involved disbursed ₹62,650 crore. In the first quarter of FY22, only ₹37,600 crore was disbursed. 

Public sector banks have been the major channel of small business loans, accounting for more than 55 per cent of total disbursals. Private commercial banks, regional rural banks, small finance banks, MFIs and NBFCs account for the rest.  Launched in April 2015 by the Centre, PMMY gives loans up to ₹10 lakh, which are disbursed by commercial banks, regional rural banks, small finance banks, MFIs and NBFCs. Public sector banks account for over 60 per cent of the loans disbursed.

The disbursal of Mudra advances stood at ₹3.31-lakh crore, ₹3.11-lakh crore and ₹3.29-lakh crore in FY22, FY21 and FY20, respectively. 

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