Mudra loans witnesses surge, crosses Rs 5 lakh cr mark in FY24

According to the latest Government data, loans sanctioned in the last financial year were higher at Rs 5.28 lakh crore, and the total disbursals stood at Rs 5.20 lakh crore in the year ended March 2024, compared to Rs 4.40 lakh crore in the previous financial year.

New Delhi: Small business loans provided under the Pradhan Mantri Mudra Yojana (PMMY) witnessed an exceptional growth in disbursals in FY24, with the total amount crossing the milestone of Rs 5 lakh crore.

According to the latest Government data, loans sanctioned in the last financial year were higher at Rs 5.28 lakh crore, and the total disbursals stood at Rs 5.20 lakh crore in the year ended March 2024, compared to Rs 4.40 lakh crore in the previous financial year. It is worth noting that nearly 70 percent of the beneficiaries of these loans are women.

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According to a senior Mudra official, there is an institutional framework that encourages lenders to push disbursal of Mudra loans further, such as the guarantee provided by the National Credit Guarantee Trustee Company Ltd. (NCGTC) against the eligible micro units under PMMY. Since its inception, PM Mudra Yojana has significantly transformed access to collateral-free institutional credit up to Rs 10 lakh.

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In the fiscal year 2024, while the number of PMMY loans sanctioned increased by 4.1 percent compared to the previous year, the sanctioned amount saw a substantial 14.3 percent rise. Notably, more than 69 percent of beneficiaries under this scheme are women.

The Pradhan Mantri MUDRA Yojana (PMMY) was launched by Prime Minister Narendra Modi on April 8, 2015, to provide loans of up to Rs 10 lakh to non-corporate, non-farm small/micro enterprises. With this, approximately Rs 46 lakh crore has been disbursed in Mudra loans since the introduction of the scheme in 2015, if we include the provisional figures for FY24.

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