Pradhan Mantri Mudra Yojana (PMMY) crosses the target of ₹ 1.8 lakh crore for 2016-17

Number of borrowers well over 4 crore this year including more than 70% women borrowers

Loans extended under the Pradhan Mantri Mudra Yojana (PMMY) during 2016-17 have crossed the target of ₹ 1,80,000 crore for 2016-17. Sanctions currently stand at ₹ 1,80,087 crore with final data still awaited from some of the smaller non-banking lenders. Of this amount, ₹ 1,23,000 crore was lent by banks while non-banking institutions lent about ₹ 57,000 crore. Data compiled so far indicates that the number of borrowers this year were over 4 crore, of which over 70% were women borrowers. About 20% of the borrowers were from the Scheduled Caste Category, 5% from the Scheduled Tribe Category, while Other Backward Classes accounted for almost 35% of the borrowers.

The achievements of both public sector banks and private banks have been extremely encouraging. The robust growth in bank loans to unfunded and underfunded segments is an indication of the emergence of this category of borrowers as a key driver of demand for credit.

The Union Budget has announced a target of ₹ 2.44 lakh crore for Mudra Loans during 2017-18. There would be a special focus within the Mudra Scheme on convergence with other government schemes, deepening connect with borrowers and meeting credit requirements of trainees completing skilling course.

Mudra Loans are available for non-agricultural activities upto ₹ 10 lakh and activities allied to agriculture such as Dairy, Poultry, Bee Keeping etc, are also covered. Mudra’s unique features include a Mudra Card which permits access to Working Capital through ATMs and Card Machines. Evaluation studies show that banks have been proactive in identifying and disbursing loans to first time borrowers thereby weaning them away from money lenders. Borrowers particularly value three attributes of Mudra Loans viz, non-insistence on guarantor or collateral, simple documentation and quick processing.

Mudra loan scheme surpasses annual lending target, broadening credit access with no-collateral features for small borrowers. Pradhan Mantri Mudra Yojana exceeded its annual lending objective for 2016-17 with sanctions slightly above target, disbursed by both banks and non bank lenders to over four crore borrowers-predominantly women and with notable representation from disadvantaged social groups. The Scheme offers collateral free small loans for non agricultural and allied activities, featuring simple documentation, quick processing and a Mudra Card for working capital access, and focuses on first time borrowers, convergence with other government schemes and meeting credit needs of trained individuals.