Over 40.82 crore loans worth $23.2 trillion sanctioned under Pradhan Mantri MUDRA Yojana: Ministry of Finance
- ByStartupStory | April 8, 2023
Since the Pradhan Mantri MUDRA Yojana (PMMY) program’s inception eight years ago, more than 40.82 crore loans totaling $23.2 trillion have been approved, according to the Ministry of Finance.
Speaking on the occasion, finance minister Nirmala Sitharaman said, “Since the launch of the scheme, as of March 24, 2023, about ₹23.2 lakh crore has been sanctioned in 40.82 crore loan accounts”.
“About 68 per cent of accounts under the scheme belong to women entrepreneurs, and 51 per cent of accounts belong to entrepreneurs of SC/ST and OBC categories. This demonstrates that easy availability of credit to the budding entrepreneurs of the country has led to innovation and sustained increase in per capita income,” she added.
Highlighting indigenous growth through MSMEs, the finance minister said, “The growth of MSMEs has contributed massively to the “Make in India” programme as strong domestic MSMEs lead to increased indigenous production both for domestic markets as well as for exports. The PMMY scheme has helped in the generation of large-scale employment opportunities at the grassroots level and also has proved to be a game changer while boosting the Indian economy.”
On April 8, 2015, Prime Minister Narendra Modi introduced the Pradhan Mantri MUDRA Yojana (PMMY), which enables simple, collateral-free microcredit of up to Rs. 10 lakh to non-corporate, non-farm small and microentrepreneurs for income-generating activities.
The PMMY scheme, according to Minister of State for Finance Bhagwat K. Karad, aims to give micro-enterprises in the nation seamless, collateral-free access to credit.
“It has brought the unserved and under-served sections of the society within the framework of institutional credit. The government policy of promoting MUDRA has led millions of MSME enterprises in the formal economy and has helped them to get out of the clutches of money-lenders offering very high-cost funds,” he added.
Banking the unbanked, securing the unsecure, and funding the unfunded are the three pillars upon which the financial inclusion (FI) programme is being implemented in the nation.
Banks were asked to offer collateral-free loans up to 10 lakh under three categories: Tarun (10 lakh), Kishore (between 50,000 and 5 lakh), and Shishu (up to 50,000). The programme was created to support small businesses.
“Of the total, Shishu accounts for 83% of the total loans while Kishore 15% and the remaining 2% Tarun. Targets have been achieved since the inception of the scheme barring during 2020-21 due to the COVID-19 pandemic,” the ministry said.
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