More than 408.2 mn loans amounting to Rs 23.2 trn sanctioned under PMMY

Pradhan Mantri Mudra Yojana (PMMY) sanctioned more than 408.2 million loans amounting to Rs 23.2 trillion till March 24, 2023, said the finance ministry on its 8th anniversary on Saturday.

PMMY aims to facilitate easy collateral-free credit of up to Rs 10 lakh to micro-entrepreneurs for income-generating activities. 

Under the scheme, loans have been divided into three categories based on the need for finance and the stage in maturity of the business. These are Shishu (loans up to Rs 50,000), Kishore (loans above Rs 50,000 and up to Rs 5 lakh), and Tarun (loans above Rs 5 lakh and up to Rs 10 lakh). 

Prime Minister Narendra Modi said PMMY has played a vital role in funding the unfunded and ensuring a life of dignity as well as prosperity for countless Indians. 

“Today, as we mark eight years of Mudra Yojana, I salute the entrepreneurial zeal of all those who benefitted from it and became wealth creators,” he added.

Approximately 69 per cent of the total loans have been sanctioned to women entrepreneurs & 51 per cent loans have been sanctioned to SC/ST and OBC categories of borrowers.

Union Minister for Finance & Corporate Affairs Nirmala Sitharaman said the 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.

“The growth of Micro, Small and Medium Enterprises (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,” she added.

Union Minister of State for Finance Bhagwat Kisanrao Karad said that the scheme has brought the unserved and under-served sections of 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.

One of the pillars of financial inclusion - funding the unfunded, is reflected through the PMMY, which is being implemented with the objective to provide access to credit for small entrepreneurs.

The finance ministry has called a meeting of the managing directors (MD) & chief executive officers (CEOs) of public sector banks (PSBs) along with CEO, National Payments Corporation of India (NPCI) on April 13 to review the progress under financial inclusion and social security schemes.

The meeting will be chaired by Financial Services Secretary Vivek Joshi and will review schemes such as the PMMY, Stand Up India and Prime Minister Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) scheme among others.