More than 520m loans worth £ 33.65 trillion were approved, with £ 32.87 paid trillion, under Prime Minister Mudra Yojana, as the microfinance scheme for entrepreneurs completed ten years, the Department of Financial Services M. Nagaraju said. The scheme has helped spread the growth of business to small towns and towns, where the first time entrepreneurs take the lead on their destinations, he said. About 68% of total loans were approved to women entrepreneurs, emphasizing the scheme’s focus on social inclusion and economic empowerment. Apart from 68% of the loans granted to women entrepreneurs, 50% went to SC/ST/OBC lenders, Nagaraju said. The latter category also includes women. He added that the scheme also has a low NPA ratio or non-performing assets of 3.6%. “People take loan under the scheme and pay back regularly,” said the DFS secretary. At an average NPA of 3.6%, the gross NPA in FY25 was at 2.21%, a little higher than the previous year’s 2.10%. The scheme adds 500,000 to 600,000 loan accounts annually with sanctions of approximately £ 5-6 trillion. The same number is also expected in FY26 when loans of up to £ 20 Lakh will be provided under the recently released Tarun-Plus program. Since the launch in October 2024, 22,557 loan accounts have been opened under Tarun Plus with sanctions of £ 3.190 crore. ‘Growing entrepreneurial spirit’ The growing entrepreneurial spirit among people can be seen from the rising loan value under Mundra scheme that stood at an eternal age of £ 40,000 in 2015 and now has an average of £ 1.5 lakh, Nagaraju said. The Pradhan Mantri Mudra Yojana (PMMY) was launched on April 8, 2015, with the aim of offering collateral free institutional credit of up to £ 20 lakh through member loan institutions (MLIS). This initiative is designed to give micro and small businesses access to institutional financing, which was not available to them before. The loan is available for revenue-generating activities in manufacturing, trade, services or related agricultural sectors, and is available through four loan categories: Shishu (loans up to £ 50,000); Kishor (loans between £ 50,000 and £ 5 lakh); Tarun (loans between £ 5 lakh and £ 10 lakh); Tarun Plus (loans up to £ 20 lakh for entrepreneurs who have successfully repaid previous loans under the ‘Tarun’ category). Any individual who is eligible and has a business plan can use a loan under the scheme. Credit Guarantee Fund for Micro Units (CGFMU) operated by National Credit GuareBreas Trustee Company (NCGTC) Ltd, a full -owned company, provides guarantee coverage to the MLIS for the loans expanded under PMMY. According to “Outcomes of Modinomics 2014-24”, a report by Skoch, a thinking tank, in 2024, is at least 51.4 million person years generated each year each year, with the PMMY adding 25.2 million stable and sustainable posts since 2014. Marginalized groups, women and micro-enterprises. According to IT, growth in Kishor loans (£ 50,000 – £ 5 lakh), which supports growing businesses, has risen from 5.9% in FY16 to 44.4% in FY25, showing a natural progress from micro to small businesses. The Tarun category (£ 5 Lakh – £ 10 Lakh) is also getting traction, proving that Mudra is not just about the onset of businesses, but to help scale, the report states. The SBI report also highlights a significant increase in credit flow to MSMEs, fueled by the impact of Mudra. MSME lending rose to £ 27.25 trillion in FY24 of £ 8.51 trillion in FY14 and is expected to cross £ 30 trillion in FY25. MSME credit in FY24 was almost 20% of the total bank credit, of 15.8% in FY14, showing the growing role in India’s economy. This credit expansion has enabled businesses in smaller towns and towns to gain access to financial support that were unavailable once, which strengthened India’s self-sufficient economy and grassroots job creation, the SBI report states.
Mudra scheme crosses the most important milestone of 520m loans worth £ 33.65 TN | Mint
