Hyderabad, June 30

The disbursal of Pradhan Mantri Mudra Yojana (PMMY) loans showed a significant surge at ₹62,650 crore in the first quarter of the current financial year. “This is significant growth, even surpassing the pre-Covid performance. In the comparable period last year, the disbursal was about ₹37,600 crore,’‘ a senior Mudra official told BusinessLine.

Till date, PMMY loans worth ₹66,520 crore have been sanctioned, of which, ₹62,650 crore has been disbursed. In the first quarter of FY22, Mudra advances to the tune of ₹41,516 crore were sanctioned, of which, ₹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. Mudra loans are given by commercial banks, regional rural banks, small finance banks, MFIs and NBFCs. Public sector banks, however, have been the main channel, accounting for over 60 per cent of the loans disbursed.

Record performance expected

Bankers are expecting a record performance this year, given the head start in the first quarter. “At this run rate, we expect the total disbursals this year to exceed last year’s total disbursal significantly. But we need to keep track of repayments, too,’‘ said a senior official with Union Bank of India. 

The total 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.  The increase in demand for credit, normalisation of economic activity and the push being given by banks, have been the drivers, according to experts. The 2 per cent interest subvention scheme for Sishu category of loans is also making them more affordable for petty businesses.

Mudra has also extended the last date of submission of claims under 2 per cent Interest Subvention Scheme (ISS) for Sishu loans to June 30. Murda loans are available in three categories — Sishu (up to ₹50,000), Kishore (beyond ₹50,000 and up to ₹5 lakh) and Tarun (beyond ₹5 lakh and up to 10 lakh).

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