Pradhan Mantri Mudra Yojana (PMMY), which has completed three years with a cumulative disbursal of about ₹6-lakh crore in loans to small businesses so far, is being reviewed.

The Micro Units Development & Refinance Agency Ltd (MUDRA), an apex body for the scheme, is commissioning a massive field-based longitudinal impact assessment by an independent agency.

Impact assessment

“The purpose is to check if there is any income growth for mircro entrepreneurs, especially women and those from disadvantaged sections, from the scheme,’’ a senior official of MUDRA told BusinessLine .

In the current financial year, MUDRA disbursed ₹70,765 crore in loans so far, out of the ₹75,954 crore sanctioned as on August 24. The disbursal amount for 2017-18 was ₹2,46,437 crore while in previous two years it was ₹1,75,312 crore and ₹1,32,954 crore respectively. The total number of loan accounts are over 13 crore.

“We are trying to document the impact of PMMY during the last three years at the end user level as objectively as possible,’’ the official said.

Launched in April 2015, Mudra offers three categories of loans: Shishu (up to ₹50,000), Kishor (₹50,000-5 lakh), and Tarun (₹5-10 lakh).

In the last three years, banks accounted for nearly 40 per cent of the total disbursals under the scheme, and were instrumental in achieving the target.

MUDRA is now looking at understanding the role of alternative channels such as microfinance institutions (MFIs) and other intermediary organisations in reaching out to end-users by leveraging additional funds.

Attempt is also being made to look into the social profile of the clientèle to see if there is any change in their social standing and educational background under the three categories of loans.

Changes in offing

The scheme is likely to undergo some structural changes, going forward. “There has been a demand from some sections that a provision for upgradation of loans should be included in the scheme.

“I have utilised a Mudra loan under Kishore category and have been successfully running a paper-making unit. I need more working capital which needs upgradation of my loan,” M Yadagiri, an entrepreneur here, said.

It remains to be seen if the assessment to be carried on the impact of the loans will lead to any structural changes in the scheme. The process is expected to be completed in next six months.