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Mudra Scheme: Less than 5 crore Mudra loans approved in FY22, lowest figure in 4 years

According to government data, 4.89 crore loans worth Rs 3,10,563.84 crore were sanctioned in the financial year 2021-22.

PMMY, Mudra Scheme: The Central Government had started the Pradhan Mantri Mudra Yojana (PMMY) to start small enterprises. Under this, people are given small amount of loan to start their business, but its recent figures can become a problem for the government. In fact, the number of loans sanctioned to Micro and Small Enterprises (MSEs) in the financial year 2021-22 under the Pradhan Mantri Mudra Yojana has come down to less than 5 crore. This figure is the lowest in the last four years. According to government data, 4.89 crore loans worth Rs 3,10,563.84 crore were sanctioned in the financial year 2022, out of which Rs 3,02,948.49 crore loans have been disbursed.

lowest figure in four years

Talking about the financial year 2021, then 5.07 crore loans worth Rs 3,21,759.25 crore were sanctioned, while Rs 3,11,754.47 crore loans were given to the needy during this period. At the same time, maximum loans were sanctioned in the financial year 2020. In the financial year 2020, 6.22 crore loans worth Rs 3,37,495.53 crore were sanctioned, out of which Rs 3,29,715.03 crore were disbursed. Apart from this, 5.98 crore loans amounting to Rs 3,21,722.79 crore were sanctioned in FY19, while the amount disbursed during this period was Rs 3,11,811.38 crore.

What do experts say

The government’s Emergency Credit Line Guarantee Scheme (ECLGS) could also be one of the reasons for the decline in the number of loans sanctioned and disbursed under this scheme. Union Bank of India Chief Economist Sujit Kumar told Financial Express Online, “The Mudra scheme is open to both new customers (NTBs) and existing customers of the bank. However, with the increase in the support extended to existing customers through ECLGS, the scope of lending started expanding, making it the preferred option for such borrowers. It also became easier for banks to lend more to their existing SME customers through ECLGS.”

Pradhan Mantri Mudra Yojana (PMMY) was launched in the year 2015 to start small enterprises. Under this, people are given small amount of loan to start their business. The maximum loan amount under this scheme is Rs 10 lakh. Talking about the disbursement rate of loans to the needy, it was 97.54 percent in the financial year 2022. Whereas in FY 2021 it was 96.89%, in FY 2020 97.69% and in FY 2019 this rate was 96.91 percent.

The target was to give loan of Rs 3 lakh crore

However, despite giving the lowest loan in four years, the lending institutions have achieved the target set by the government. The government had given a target of giving loan of Rs 3 lakh crore to the lending institutions under this scheme in the financial year 2021-22. Madan Sabnavis, Chief Economist, Bank of Baroda says, “Many MSME borrowers have turned to the ECLGS scheme for loans. However, we should not see further decline in Mudra loans, as ECLGS is almost over for those who were eligible for this scheme. The latest version of this scheme is for other dedicated sectors. The government had launched the ECLGS 3.0 scheme in March last year for sectors like hospitality, travel and tourism and sporting. At the same time, its 4.0 version was launched in May to set up on-site oxygen production plants for hospitals, nursing homes, clinics, medical colleges after the second wave of the pandemic.

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