Credit and finance for MSMEs: The Pradhan Mantri Mudra Yojana (PMMY), which was launched in April 2015 to grant loans of up to Rs 10 lakh to micro units, has sanctioned over 38.4 crore loans amounting to Rs 21.5 lakh crore since the launch, the Economic Survey tabled by Finance Minister Nirmala Sitharaman on Tuesday said. Out of the total loans sanctioned, more than 8.2 crore loans amounting to Rs 6.8 lakh crore were extended to new entrepreneurs, approximately 21 per cent of total loans extended under the scheme.
Moreover, about 68 per cent (26.1 crore) of loans were sanctioned to women entrepreneurs, the survey noted. Year-wise, out of 6.22 crore loans in FY20, 3.91 crore were to women MSMEs. In comparison, out of 5.07 crore loans in FY21, 3.33 crore were to women borrowers and in FY22, 3.84 crore loans were to women borrowers out of total 5.37 crore loans, according to the data shared by the Minister of State for finance Bhagwat Karad in the Parliament in December 2022.
Also read: Mudra loan: Over 16 crore loans sanctioned, this much amount extended in last three FYs
The scheme enables credit for income-generating activities in manufacturing, trading, and service sectors, including activities allied to agriculture such as poultry, dairy, beekeeping, etc. It consists of three products namely Shishu wherein loans up to Rs 50,000 are sanctioned, Kishore for loans above Rs 50,000 and up to Rs 5 lakh, and Tarun for loan amount between Rs 5 lakh and Rs 10 lakh.
Also read: Mudra loan NPA only 3.17% of advances: Finmin
Meanwhile, the growth in Mudra sanctions came amid a marginal dip in the non-performing asset (NPA) levels for credit disbursed under the scheme in FY22. Based on the provisional data as of March 31, 2022, shared by Karad in Parliament in July this year, NPAs as a cumulative percentage of total Mudra loans disbursed in FY22 decreased to 3.17 per cent from 3.61 per cent in FY21 though still above pre-Covid 2.53 per cent in FY20.
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