Mudra Yojana: sanctioned loan amount in FY 2021 so far to MSEs

Credit and Finance for MSMEs: The Modi government’s pet scheme to support entrepreneurship and self-employment – Pradhan Mantri Mudra Yojana (PMMY) has disbursed 93 per cent of the loan amount sanctioned as of November 13, 2020, for the current financial year 2020-21, according to the government data. 1,54,20,470 (1.54 crore) loans involving an amount of Rs 98,916.65 crore were sanctioned out of which Rs 91936.62 crore amount was disbursed, according to the provision data updated on the Mudra scheme portal. The disbursement rates for the preceding financial years FY20 and FY19 were 97.6 per cent and 97 per cent respectively. Lenders including banks, non-banking financial companies, microfinance institutions, others had disbursed Rs 329684.63 crore and Rs 311811.38 crore respectively for the said period.

Launched in April 2015, PMMY offers loans up to Rs 50,000 under Shishu cover followed by Rs 50,000 – 5 lakh worth loans under the Kishor cover and Rs 5 lakh – Rs 10 lakh under the Tarun cover to non-corporate, non-farm micro and small enterprises. Among the support extended by the government to help Covid-hit small businesses financially, Finance Minister Nirmala Sitharaman had in May this year announced a 2 per cent interest subvention on loans up to Rs 50,000 secured under the Mudra scheme’s Shishu cover for 12 months. The total entailed total relief of Rs 1,500 crore to Shishu loanees. The relief was part of the Rs 20 lakh crore Atmanirbhar Bharat stimulus package.