Over 28.68 Cr loans sanctioned by Banks, NBFCs and MFIs since launch of PMMY

at 3:40 pm
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New Delhi (NVI): Union Finance Ministry today said that over 28.68 crore loans for an amount of Rs 14.96 lakh crore have been sanctioned since the launch of Pradhan Mantri MUDRA Yojana (PMMY) as on March 19, 2021.

According to the ministry, 4.20 crore PMMY loans were sanctioned in 2020-21 and Rs. 2.66 lakh crore were sanctioned in Financial Year 2020-21.

“The average ticket size of the loans is about Rs 52,000. Out of the loans, 88% are of ‘SHISHU’ category,” the government said.

The ministry further said that almost 24% of the loans have been given to new entrepreneurs, about 68% of the loans have been given to women entrepreneurs, about 51% of the loans have been given to SC/ST/OBC borrowers.

According to data available, the SCs and STs constitute 22.53 % of the borrowers while OBCs constitute 28.42% of the borrowers. about 11% of the loans have been given to minority community borrowers.

As per a survey conducted by Ministry of Labour and Employment, PMMY helped in generation of 1.12 crore net additional employment from 2015 to 2018.

“Out of the 1.12 crore of estimated increase in employment, Women accounted for 69 lakh (62%),” the ministry said.

The ministry said that it is committed to provide financial inclusiveness and support to the marginalized and hitherto socio-economically neglected classes.

“Financial needs of all stakeholders ranging from the budding entrepreneurs to the hard-working farmers has also been catered to through various initiatives,” the ministry said.

Under PMMY collateral free loans of upto Rs. 10 Lakh are extended by Member Lending Institutions (MLIs) viz Scheduled Commercial Banks, Regional Rural Banks (RRBs), Small Finance Banks (SFBs), Non Banking Financial Companies (NBFCs), Micro Finance Institutions (MFIs) etc.

The loans are given for income generating activities in manufacturing, trading and services sectors and for activities allied to agriculture.

Mudra loans are offered in three categories namely, ‘Shishu’, ‘Kishore’and ‘Tarun’ which signifies the stage of growth or development and funding needs of the borrowers.