Mudra loan sanctions in FY21 drop 21% YoY to 2.7 trn as Covid-19 weighs

The pandemic impact and subsequent lockdown leading to closure of several small units, there are concerns that NPAs under the scheme may rise

Loans sanctioned to small businesses and entrepreneurs under the Pradhan Mantri Mudra Yojana (PMMY) dropped to Rs 2.7 trillion in financial year 2020-21 as the Covid-19 pandemic weighed on business activity. Loans sanctioned under PMMY were Rs 3.4 trillion in FY20 and Rs 3.2 trillion in FY19.

About 42 million loans worth Rs 2.7 trillion were sanctioned under the PMMY scheme in the last financial year as on March 19, 2021, said a statement from Ministry of Finance.

The PMMY was launched in 2015 to provide loans up to Rs 10 lakh to non-corporate, non-farm small and micro enterprises. In