Money & Banking

Mudra loans surpass FY20 target by 5% at ₹3.37-lakh cr

G Naga Sridhar Hyderabad | Updated on October 21, 2020

A representational image   -  Reuters

Small business loans sanctioned under the Pradhan Mantri Mudra Yojana (PMMY) have exceeded the target set for the financial year ended March 31, 2020, at ₹3,37,495 crore.

The target set by the Government of India under PMMY for FY20 was ₹3.25-lakh crore, which was distributed across various lending institutions, banks, MFIs and NBFCs based on their outreach and presence in various parts of the country.

According to the latest data available, sanctions in FY20 registered a 5 per cent growth over the previous year, which registered loan sanctions worth ₹3,21,721 crore.

While the growth in respect of public sector banks was moderate at 7 per cent, the same increased significantly by 43 per cent for private sector banks.

Among the PSBs, State Bank of India (SBI), with sanctions of ₹35,125 crore to ₹36.76-lakh crore accounts, topped the table. SBI was followed by Bank of Baroda and Canara Bank with sanctions worth ₹10,282 crore and ₹9,489 crore, respectively.

Private sector banks recorded considerable improvement in performance, with a sanction of ₹91,780 crore during the year, registering 43 per cent growth over the previous year.

NBFCs have also emerged as a major contributor to the PMMY, with total sanctions of ₹40,518 crore (12 per cent of the total sanction amount).

Of all the States, Tamil Nadu topped with sanctions of ₹35,017 crore, followed by Uttar Pradesh at ₹30,949 crore and Karnataka in the third position at ₹30,188 crore.

In terms of growth of loans over the previous year (FY19), Uttar Pradesh topped the list at 18 per cent, followed by Bihar and Rajasthan with 12 per cent growth each.

Hyderabad, Bengaluru Urban and Kolkata were the top three districts in the country in terms of loan sanctions.


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)

Among the three categories, Shishu loans had the largest share at 88 per cent in terms of the number of accounts and 48 per cent in terms of value. Further, Shishu loans sanction amount grew by 15 per cent over last year.

About 66 per cent of the accounts in the Shishu category belonged to women. The reason for the high share of women in Shishu category is lending of microloans by MFIs, primarily to women, according to Mudra.

Since its launch five years ago, the PMMY programme has benefited 24.48 crore loan accounts, with a sanction of ₹12.30-lakh crore.

In the current financial year, Mudra loans sanctions stood at ₹82,959 crore as on October 16.

Published on October 21, 2020

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