Hyderabad, January 10

The Mudra loans registered an all-time record growth in the third quarter of the current fiscal at ₹2.58-lakh crore compared to ₹1.58-lakh crore in the same period last year.

According to the latest data available with Mudra, the small business loans under the Pradhan Mantri Mudra Yojana (PMMY), the flagship business loans scheme of the centre, the sanctioned amount as on December 2022 was ₹2.58-lakh crore out of which loans worth ₹2.51-lakh crore have been disbursed. 

“This is a record growth which not only displays the appetite for small business loans but also willingness of banks and other agencies involved to support business growth,’‘ a senior Mudra official told businessline.

At this run rate, total disbursal of Mudra loans are likely to set a record in the financial year ending March 2023, the official added. 

The drivers for the surge in demand and disbursal are varied. “The overall demand situation has improved significantly. This seems to have had a positive spill-over effect on small businesses as well,” Prasanna Tantri, Executive Director, Centre for Analytical Finance, Indian School of Business said. 

“In addition, banks are also well capitalised. They are in a position to lend. A combination of these two seems to be driving an increase in Mudra loans. The fact that past loans have performed reasonably well also seems to have helped,’‘ he added. 

In the last financial year, loans worth ₹3.31-lakh crore were disbursed under PMMY against a sanctioned amount of ₹3.39-lakh crore. 

Non-performing assets

The rapid growth also brings concern over any possible increase in non-performing assets (NPAs) though the situation was under control during the last financial year, said a senior SBI official adding that slippages, if any, needed to be contained

According to the data of the Ministry of Finance, the Non-Performing Assets in the PMMY loans were at 3.17 per cent as of March 2022. The consolidated numbers on the quantum of NPAs in the current financial year so far have not been released yet. 

Mudra loans are extended in three categories — Shishu (up to ₹50,000), Kishor (above ₹50,000 and up to ₹5 lakh) and Tarun (above ₹5 lakh and up to ₹10 lakh).