Pradhan Mantri Mudra Yojana (PMMY) scheme, which marked 10 years of its existence on Tuesday, has recorded a decline in the number of loans sanctioned, amount sanctioned, and amount disbursed for the first time since its launch, barring the Covid period.
According to the official data, the scheme has reported the lowest number of loans sanctioned since FY17 in the last fiscal. FY25 saw 4.79 crore loans sanctioned to micro enterprises, lowest since 3.97 crore loans sanctioned in FY17. It declined 28 per cent from 6.67 crore sanctioned in FY24.
Likewise, the amount involved in loans sanctioned also dropped by 7 per cent to Rs 5 lakh crore in FY25 from Rs 5.41 lakh crore in FY24, while the amount disbursed out of the sanctioned amount also declined by 7 per cent to Rs 4.91 lakh crore in FY25 from Rs 5.32 lakh crore in FY24.
Email sent to Micro Units Development & Refinance Agency (Mudra), which operates the scheme, seeking comment for this story didn’t elicit an immediate response.
The scheme launched on April 08, 2015, by Prime Minister Narendra Modi had disbursed Rs 1.32 lakh crore loan amount out of Rs 1.37 lakh crore sanctioned across 3.48 crore loans in its first year of FY16. It grew to the disbursed loan amount of Rs 5.32 lakh crore out of Rs 5.41 lakh crore sanctioned across 6.67 crore loans in FY24.
The disbursements and sanctions had recorded a marginal dip during FY21 due to Covid-induced business inactivity.
The scheme offers small-ticket loans to micro and small enterprises by commercial banks, regional rural banks, small finance banks, non-banking financial companies, and microfinance institutions.
Earlier on Tuesday, PM Modi had hailed the 10-year journey of the scheme with over 52 crore loans worth Rs 32.61 lakh crore sanctioned so far.
“Today, as we mark, #10YearsOfMUDRA, I would like to congratulate all those whose lives have been transformed thanks to this scheme. Over this decade, Mudra Yojana has turned several dreams into reality, empowering people who were previously overlooked with the financial support to shine. It illustrates that for the people of India, nothing is impossible!” PM Modi said in a post on X.
According to the data shared by the Finance Ministry, 68 per cent of loan accounts under the Mudra scheme belong to women beneficiaries, while 50 per cent are loans to SC/ST and OBC entrepreneurs.
Moreover, the share of Kishor loans (Rs 50,000 to Rs 5 lakh) has grown from 5.9 per cent in FY16 to 44.7 per cent in FY25, indicating a shift from micro to small enterprises, the ministry said in a statement. The remaining 51 per cent belong to Shishu category (up to Rs 50,000) while 3.6 per cent belong to Tarun category (Rs 5 lakh to Rs 10 lakh).
Importantly, the Finance Ministry in October last year had notified the increase in Mudra loan limit to Rs 20 lakh under new category Tarun Plus from Rs 10 lakh earlier, following the announcement made in the Budget last year on doubling the loan limit by Finance Minister Nirmala Sitharaman.