PM Mudra Yojana Achieves Milestone with Over 52 Crore Loans Sanctioned

Significant Achievements of PM Mudra Yojana

New Delhi, April 1: The Pradhan Mantri Mudra Yojana (PMMY) has successfully sanctioned more than 52.37 crore loans, amounting to a total of Rs. 33.65 lakh crore since its inception in April 2015, as per an official report.

Approximately 70% of these loans have been allocated to women entrepreneurs, while around 50% have benefited borrowers from Scheduled Castes, Scheduled Tribes, and Other Backward Classes, the report highlighted.

A detailed analysis of the loan distribution indicates that Shishu loans represent 78% of the total number of loans, accounting for 36% of the total sanctioned amount.

The Shishu category includes loans up to Rs. 50,000, whereas Kishor loans range from Rs. 50,000 to Rs. 5 lakh, and Tarun loans are for amounts between Rs. 5 lakh and Rs. 10 lakh. Kishor loans constituted 20% of the total loans and 40% of the disbursed amount.

Tarun loans made up 2% of the total loans but represented 24% of the disbursed funds. The newly introduced Tarun Plus category is aimed at individuals who have successfully repaid their Tarun loans, allowing them to access funding between Rs. 10 lakh and Rs. 20 lakh. Furthermore, the Credit Guarantee Fund for Micro Units (CGFMU) will now offer guarantee coverage for these larger loans, underscoring the government's dedication to fostering a vibrant entrepreneurial environment in India.

PMMY was initiated to finance small business ventures that generate income across various sectors, including manufacturing, trading, and services, as well as agriculture-related activities such as poultry, dairy, and beekeeping. It caters to both Term Loan and Working Capital needs.

In a bid to bolster support for budding entrepreneurs, the Finance Minister announced an increase in the loan limit to Rs. 20 lakh during the Union Budget for 2024-25 on July 23, 2024. This revised limit became effective on October 24, 2024, with loans being provided through Banks, NBFCs, MFIs, and other financial institutions.