Modi govt achieves Mudra loan target third year in a row; banks gave this much loan last year

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June 12, 2019 10:03 PM

Mudra Loan: The scheme has not only achieved the target in terms of sanctioning the loans but it has surpassed it in terms of actual disbursals.

Mudra Scheme, Loan, Loan Form, How to take loan under Mudra SchemePrime Minister Narendra Modi launched the scheme in April 2015.

Mudra Scheme: Prime Minister Narendra Modi’s flagship scheme to support small businesses and entrepreneurs has achieved its annual target for the third consecutive year. In last year’s budget, the government had set an ambitious target of giving small loans worth Rs 3 lakh crore in FY 2018-19 under the Mudra Scheme. Financial Express Online had reported last month that Modi government was on course to achieve the target for the third consecutive year.

As per the latest official data, smalls loans worth more than Rs 3.21 lakh crore have been sanctioned in 2018-19 under the scheme as against the target of Rs 3 lakh crore. And disbursement was also above the target at around Rs 3.12 lakh crore.

Initially the target looked difficult to achieve as it was a jump of nearly 23% over the target for FY 2017-18. The scheme also did not pick the pace initially, prompting the government machinery to get cracking in the second half asking the banks and NBFCs to ensure delivery of targets set under Prime Minister Modi’s favorite flagship scheme to boost entrepreneurship in the country.

READ ALSO: Exclusive: Government set to achieve Mudra Loan target for the third consecutive year

And the last minute push given by the government indeed paid off as instead of falling short of the target, the scheme overshot the target by 7% or over Rs 21,000 crore.

“We have already crossed the target. In the next week or so we will officially release the data,” a senior official in the department of financial services had told Financial Express Online last month.

The Union Government has crossed the target of Mudra loans in the previous two financial years as well.

READ ALSO: Budget 2019: Did Modi government borrow too much in April? Here’s what the data suggests

Under the Mudra scheme, Modi government had set the target of giving loans worth Rs 1.80 lakh crore in 2016-17. And the total amount of sanctioned loans in the financial year was slightly above Rs 1.8 lakh crore. Though the target was met in terms of sanctioning of the loans, the disbursal fell short by Rs 5,000 crore in that year.

The government increased the target from Rs 1.80 lakh crore to Rs 2.44 lakh crore in 2017-18, a jump of nearly 35%. However, the government was able to achieve the steep target as Mudra loans worth more than Rs 2.53 lakh crore were sanctioned in FY 2017-18 and disbursal was also Rs 2,000 crore more than the target.

READ ALSO: Budget 2019: 9% growth or 2% decline? Modi govt faces Hobson’s choice on MGNREGA

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