Mudra loans may cross Rs 3 lakh crore in 2019-20

Total sanctions under the Pradhan Mantri Mudra Yojana (PMMY) loan scheme for micro industries are likely to cross Rs 3 lakh crore in the current fiscal, a senior Finance Ministry source said on Thursday. 

Government data for the scheme for the last fiscal, till March 22, 2019, put the figure of Mudra sanctions at Rs 2.82 lakh crore to 541.27 lakh borrowers. 

The loan is given primarily for the purpose of employment creation at the grassroots level through formal banking credit channel. Maximum loan amount under the PMMY is upto Rs 10 lakh. Loans up to Rs 50,000 are categorised as ‘Shishu’, those from Rs 50,001 to Rs 5 lakh are called ‘Kishore’ and loans from Rs 5.01 lakh to Rs 10 lakh are categorised as ‘Tarun’.

The loans are being given as working capital and term loans for business enterprises in manufacturing, trading and services, including for allied agricultural activities. 

Finance Ministry data shows Rs 2,82,594.30 crore has been sanctioned under PMMY and the Shishu loan cornered 46 per cent of the amount , Kishore 32 per cent and Tarun makes up 22 per cent of the sanctioned amount.

Out of a total 5,41,27,092 accounts, Shishu accounts are at 4,69,04 215, Kishore at 58,64,952 and Tarun at 13,57,925. 

Out of these accounts, women borrowers are 340.45 lakh and SC/ST/OBC borrowers are 259.71 lakhs, the new entreprenuers are 107.57 lakh, the data said. 

These loans require no collateral security and are guaranteed by the Credit Guarantee for Micro Units (CGFMU), and the same is provided through the National Credit Guarantee Trustee Company (NCGTC). 

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