Mudra loans sanctioned and disbursed in the current financial year have crossed Rs 1 lakh crore, according to the data from the Mudra portal. As of August 27, 1.36 crore Mudra applications involving Rs 1.37 lakh crore were sanctioned, of which Rs 1.32 lakh crore were disbursed.
The scheme was launched in 2015 by Prime Minister Narendra Modi to provide small-ticket loans of up to Rs 10 lakh to micro and small enterprises by commercial banks, regional rural banks, small finance banks, non-banking financial companies, and microfinance institutions.
In FY24, 6.67 crore loans involving Rs 5.41 lakh crore were sanctioned, of which Rs 5.32 lakh crore were disbursed, according to the available data. In comparison, 6.23 crore loans amounting to Rs 4.56 lakh crore were sanctioned and Rs 4.50 lakh crore were sanctioned.
To boost penetration of Mudra loans in the country, Finance Minister Nirmala Sitharaman in this year’s full budget in July had announced increasing the credit limit to Rs 20 lakh from Rs 10 lakh. However, it would be for existing borrowers.
The scheme disburses credit under three categories viz., ‘Shishu’ for loans up to Rs 50,000, ‘Kishore’ for loans up to Rs 5 lakh and ‘Tarun’ for credit up to Rs 10 lakh. Interest on Mudra loans by PSBs and private banks ranges from 9.15 per cent -12.80 per cent and 6.96 per cent –28 per cent respectively based on the cost of funds, risk profile of the borrower, tenure of loans, etc.
With respect to the portfolio quality, 76.29 lakh Mudra loan accounts amounting to Rs 43,407.09 crore have turned into non-performing assets (NPAs) as of March 2024, according to the data shared by Sitharaman in a written reply to a question in the Lok Sabha on August 5, 2024.
Category-wise, 49.70 lakh Shishu loans involving Rs 6,874.31 crore, 24.27 lakh Kishore loans involving Rs 23,618.86 crore and 2.32 lakh Tarun loans amounting to Rs 12,913.92 crore were NPAs as of March this year.