Loans Online – PMMY: PM Modi’s Mudra Loan Program Disbursed 94% of the Sanctioned Amount to Micro Businesses | Fintech zoom

The gross bank loans granted to KKUs in December 2020 had increased by 6.6 percent from 10.61 lakh crore in the same period of the previous year to 11.31 lakh crore Rs.

Loan and financing for MSMEs: Prime Minister Narendra Modi’s Pradhan Mantri Mudra Yojana (PMMY) program to promote entrepreneurship and self-employment has paid 94 percent of the loan amount approved to micro and small enterprises (SMEs) as of February 26 of the current fiscal year. Of the 2.38 million rupees totaling 3.68 billion rupees, 2.24 billion rupees were disbursed during the 11 month period of FY21, according to the program’s preliminary data available on its portal. The payout ratio for the previous fiscal years 2019-20 and 2018-19 was 97.6 percent and 97 percent, respectively. Credit institutions including banks, non-bank financial firms, microfinance institutions and others had disbursed Rs 329 684.63 billion in FY20 and Rs 311 811.38 billion in FY19. The program was launched in 2015 by PM Modi.

PMMY offered loans worth up to 50,000 rupees under the Shishu cover, 50,000 rupees – 5 lakh loans under the Kishor cover, and 5 lakh – Rus 10 lakh under the tarun cover to non-enterprise, non-agricultural SMEs. According to a statement by the Treasury Department early last year, women entrepreneurs have received maximum benefits under the PMMY program, as out of over Rs. 22.53 billion in loans sanctioned by January 31, 2020, over Rs. 15.75 billion in loans Women were forgiven. These female beneficiaries made up 70 percent of total borrowers. IndusInd Bank had a majority stake of Rs 38.199bn disbursed in FY20, followed by SBI with Rs 34.977bn disbursed, Bandhan Bank with Rs 14.755bn etc., according to the system’s data.

Also Read: Government Procurement: Modi’s Government Purchases From Small Business Owned By Women Held Record Levels In FY21

Meanwhile, gross bank lending to micro and small businesses (MSEs) in December 2020 was up 6.6 percent to Rs 11.31 million, from Rs 10.61 million in the same period last year. December year-over-year (YoY) loan growth to KKUs was also higher than November 2020’s 6.1 percent year-over-year, according to Reserve Bank of India (RBI) data. According to RBI data, the MSME sector accounted for around 18 percent of total lending to the industry in November 2020 and around 5 percent of all non-food lending by scheduled commercial banks in November 2020.

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