Credit and Finance for MSMEs: Pro entrepreneurship and self-employment scheme Pradhan Mantri Mudra Yojana (PMMY), launched by Prime Minister Narendra Modi in 2015, has disbursed 91 per cent of the loan amount sanctioned during a little over the first three quarters of the financial year 2020-21. 2,68,45,133 (2.68 crores) loans involving an amount of Rs 1,62,195.99 crore were sanctioned out of which Rs 1,48,388.08 crore amount was disbursed as of January 8, 2021, showed the provisional data on the Mudra scheme portal. The disbursement rates for the preceding financial years FY20 and FY19 were 97.6 per cent and 97 per cent respectively with lenders including banks, non-banking financial companies, microfinance institutions, others disbursing Rs 329684.63 crore and Rs 311811.38 crore for the said period.
This has increased from 1,54,20,470 (1.54 crore) sanctioned loans involving Rs 98,916.65 crore sanctioned amount out of which Rs 91936.62 crore was disbursed as of November 13 FY21. The scheme offers loans up to Rs 50,000 under Shishu cover followed by Rs 50,000 – 5 lakh worth loans under the Kishor cover and Rs 5 lakh – Rs 10 lakh under the Tarun cover to non-corporate, non-farm micro and small enterprises. Importantly, women entrepreneurs have reaped maximum benefits under the PMMY scheme as out of over Rs 22.53 crore loans sanctioned till January 31, 2020, over Rs 15.75 crore loans were extended to women. These women beneficiaries were 70 per cent of total borrowers, according to a statement by the Ministry of Finance earlier last year.
Meanwhile, the gross bank credit to micro and small enterprises (MSEs) recorded a steady growth in October as well. From Rs 10.53 lakh crore as on October 25, 2019, the deployment was up 6.8 per cent to Rs 11.25 lakh crore as on October 23, 2020, according to the December 2020 bulletin of the Reserve Bank of India. To continue help MSMEs recover from the Covid impact, the government had enabled sanctioning of over 80 lakh loans involving Rs 2.05 lakh crore out of which loans involving more than Rs 1.58 lakh crore were been disbursed as of December 4, 2020, under the Emergency Credit Line Guarantee Scheme.