The average loan amount under the Mudra scheme has been around Rs 52,000.
Credit and Finance for MSMEs: Pradhan Mantri Mudra Yojana (PMMY), which was launched by Prime Minister Modi in April 2015 to promote entrepreneurship through access to microcredit, had reported sanctioned majority loans to women entrepreneurs since the scheme’s inception. As of June 25, 2021, loans of Rs 20.31 million for an authorized amount of Rs 6.86 million were made to female entrepreneurs, according to data shared by member lending institutions (MLIs) on the Mudra portal. . This represented 68 percent of total loans and 43 percent of the total amount sanctioned under the scheme in little more than a six-year period.
MLIs provide institutional credit of up to Rs 10 lakh for entrepreneurial activities to micro and small enterprises that help to create income-generating activities in sectors such as manufacturing, commerce, services and activities related to agriculture, Minister of State for Finance Ministry Bhagwat Karad had informed Rajya Sabha on Tuesday sharing the details of the plan. The total loans sanctioned as of August 11, 2021 amounted to Rs 30.65 million, implying Rs 16.16 lakh crore, according to an analysis of data available on the portal. Of the total amount sanctioned, 15.66 lakh crore rupees were disbursed.
“The increased participation of women is very encouraging because the government has been talking about providing access to finance to women entrepreneurs and the Mudra scheme has been one of the main programs that we talked about. It is the first scheme we examined when it comes to financial awareness and financial literacy among women entrepreneurs and the scheme has very effectively provided this information in the public domain. I think the communication channel is clearer now, ”Jahnabi Phookan, immediate past president of FICCI FLO and director of JTI Group, told Financial Express Online.
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The average size of loans under the Mudra scheme has been around 52,000 rupees, while 88 percent of the loans were in the ‘SHISHU’ category, according to a statement from the Ministry of Finance in April this year. While the majority of beneficiaries were women entrepreneurs, around 24 percent were made loans to new entrepreneurs and 51 percent were made to SC / ST / OBC borrowers. According to a survey conducted by the Ministry of Labor and Employment, the scheme had contributed to generating net additional employment of Rs 1.12 million between 2015 and 2018, including 69 lakh female employees.
The government was targeting loan sanctions of Rs 3 lakh crore under the Mudra scheme for fiscal year 22, down from Rs 3.21 lakh crore sanctioned in FY21, and Rs 3.37 lakh crore sanctioned in FY20. According to data from the Ministry of Finance, Mudra’s NPAs had risen to Rs 18,835 crore in FY20 compared to Rs 11,483 crore in FY19 and Rs 7,277 in FY18. Meanwhile, the share of bank credit to micro and small enterprises (MSEs) in the country’s total gross bank credit continued to decline for the fifth consecutive month in May this year. From 12.11 percent in December 2020, the share of MSEs decreased to 12.09 percent in January 2021, to 11.8 percent in February, to 11.3 percent in March, to 9, 7 percent in April and 9.48 percent in May. Total gross bank credit as of May 2021 stood at Rs 108.33 lakh crore, RBI’s July bulletin showed.
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