Mudra loans topped Rs. 5-lakh-crore mark in FY24
Small business loans under the Pradhan Mantri Mudra Yojana (PMMY) witnessed record growth in disbursals in FY24 and also crossed the milestone of Rs. 5lakh crores, according to the latest Government data.
Loans sanctioned in the last financial year were higher at Rs. 5.28lakh crore. The total disbursals stood at Rs. 5.20lakh crore in the year ended March 2024, against Rs. 4.40lakh crore in the previous financial year. Nearly 70 per cent of the beneficiaries of these loans are women.
“With this, approximately Rs. 46lakh crore has been disbursed in Mudra loans since the introduction of the scheme in 2015, if we include the provisional figures for FY24,’‘a senior Mudra official told.
The growth is driven by a variety of factors. “Lower delinquency rate in this segment is motivating public sector banks (PSBs) to further boost loan growth. PSBs are diligently monitoring fund utilisation through consistent follow-ups and frequent customer interactions,” Bibekananda Panda, Senior Economist, State Bank of India (SBI), told.
According to a senior Mudra official, there is also 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.
