Loans sanctioned to small businesses and entrepreneurs under the Pradhan Mantri Mudra Yojana (PMMY) dropped to Rs 2.7 trillion in financial year 2020-21 as the Covid-19 pandemic weighed on business activity. Loans sanctioned under PMMY were Rs 3.4 trillion in FY20 and Rs 3.2 trillion in FY19.
About 42 million loans worth Rs 2.7 trillion were sanctioned under the PMMY scheme in the last financial year as on March 19, 2021, said a statement from Ministry of Finance.
The PMMY was launched in 2015 to provide loans up to Rs 10 lakh to non-corporate, non-farm small and micro enterprises. In FY21, about 88 per cent of the loans were sanctioned with amount up to Rs 50,000 which fell under the ‘Shishu’ category, the statement said. Around 24 per cent of the total loans were been given to new entrepreneurs, while 68 per cent of the loans have been given to women entrepreneurs. Loans under the scheme are divided into three categories Shishu that covers loans up to Rs 50,000; Kishore that covers loans from over Rs 50,000 to Rs 5 lakh; and Tarun with loans above Rs 5 lakh to Rs 10 lakh.
The average ticket size of the loans sanctioned in the last financial year, up to March 19, was about Rs 52,000.
NPAs
About 287 million loans worth Rs 14.9 trillion have been sanctioned since launch of the scheme, the statement said.
With the Covid-19 pandemic severely impacting the economy, and the subsequent lockdown leading to closure of several small business units, there are concerns that the non-performing assets under the scheme may increase. NPAs under the scheme were 2.56 per cent in 2019-20 as compared to 2.51 per cent a year ago. The latest quantum of NPAs has not been disclosed yet.
NPAs under PMMY for public sector banks as on March 31, 2020 were Rs 18,836 crore against the total disbursed amount of Rs 3.82 trillion.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU