Mudra loans for micro and small enterprises: The national level loan target under the Pradhan Mantri Mudra Yojana (PMMY) has been overachieved in the financial year 2022-23 for the second consecutive year after missing it during the Covid year of 2020-21, according to the data shared by Bhagwat Karad, Minister of State in the Finance Ministry in a written reply to a question in the Lok Sabha.
“While the government allocates annual target to member lending institutions (MLIs), the latter in turn fix their respective state-wise target according to the potential of the area, their presence and other related parameters,” Karad said. MLIs include commercial banks, regional rural banks, small finance banks, microfinance institutions, and non-banking financial companies (NBFCs).
In FY23, Rs 4.56 lakh crore was sanctioned under 6.2 crore Mudra loans to non-corporate and non-farm micro and small enterprises (MSEs) against the target of Rs 4 lakh crore while in FY22, Rs 3.39 lakh crore was sanctioned under 5.3 crore loans against the target of Rs 3 lakh crore. In FY21, however, Rs 3.21 lakh crore was sanctioned under 5 crore loans against Rs 3.50 lakh crore target while pre-Covid, during FY20, Rs 3.37 lakh crore was sanctioned under 6.2 crore loans, more than the set target of Rs 3.25 lakh crore, according to the data from the Mudra portal
Out of the sanctioned amount, Rs 4.5 lakh crore was disbursed in FY23, Rs 3.31 lakh crore in FY22, Rs 3.11 lakh crore in FY21, and Rs 3.29 lakh crore in FY20. Till July 21 in the current fiscal, 1.35 lakh crore loans involving Rs 1.07 lakh crore were sanctioned, of which Rs 1.02 lakh crore were disbursed.
Till June 30, 2023, more than 42.20 crore loans involving Rs 24.34 lakh crore were sanctioned to the borrowers under the scheme across the country since April 8, 2015.
The scheme was set up by the government to refinance all last-mile financiers in the business of lending to micro and small businesses in manufacturing, trading and services activities as well as agri-allied activities. Mudra enables credit for micro units to support their growth at three different stages — Shishu, Kishor, and Tarun with financial limits up to Rs 50,000; up to Rs 5 lakh; and Rs 5 lakh to Rs 10 lakh respectively.