Mudra Yojana: 91% of loan amount sanctioned under PM Modi’s pet program disbursed to MEPs in Q1-Q3 FY21
Credit and financing for MSMEs: The Pradhan Mantri Mudra Yojana Entrepreneurship and Self-Employment Program (PMMY), launched by Prime Minister Narendra Modi in 2015, disbursed 91% of the sanctioned loan amount for just over the first three quarters of the year. fiscal year 2020-21. Loans of 2 68 45 133 (2.68 crore) for an amount of 1 62 195.99 crore rupees were sanctioned, of which 1 48 388.08 crore rupees were disbursed as of January 8, 2021, showed the provisional data on the Mudra program portal. The disbursement rates for the previous fiscal years FY20 and FY19 were 97.6% and 97% respectively with lenders including banks, non-bank financial companies, microfinance institutions, others disbursing Rs 329 684.63 crore and Rs 311 811.38 crore for the said period.
This amount increased from 1,54.20,470 (1.54 crore) to sanctioned loans involving a sanctioned amount of Rs 98,916.65 crore, of which Rs 91,936.62 crore were disbursed as of November 13, FY21. The program offers loans of up to Rs 50,000 under Shishu cover, followed by loans worth Rs 50,000 to 5 lakh under Kishor cover and Rs 5 lakh to Rs 10 lakh under Tarun cover at micro and small non-commercial and non-agricultural enterprises. It is important to note that women entrepreneurs have reaped the maximum benefits from the PMMY scheme, as out of the more than 22.53 crore rupees sanctioned until January 31, 2020, more than 15.75 crore rupees have been awarded to the women. These female beneficiaries made up 70 percent of total borrowers, according to a finance ministry statement early last year.
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At the same time, gross bank credit to micro and small enterprises (MSEs) also recorded steady growth in October. From Rs 10.53 lakh crore as of October 25, 2019, deployment increased 6.8% to Rs 11.25 lakh crore as of October 23, 2020, according to the Reserve Bank of India’s December 2020 bulletin. To continue helping MSMEs recover from the impact of Covid, the government had authorized the sanction of over 80 lakh loans involving Rs 2.05 lakh crore on which loans involving over Rs 1.58 lakh crore were disbursed on December 4, 2020, under the emergency credit. Line guarantee system.