Pradhan Mantri Mudra Yojana: Rs.9.98 lakh crore sanctioned to 16.67 crore loan accounts in 3 years

As per the extant guidelines, any individual who is otherwise eligible to take loan and has a business plan for non-farm income generating activities in sectors such as manufacturing, trading, services and activities allied to agriculture and whose credit need is up to Rs.10 lakh is eligible to avail credit under the Pradhan Mantri Mudra Yojana (PMMY).

In a written response to a question in the Rajya Sabha today, Union Minister of State for Finance Dr. Bhagwat Kisanrao Karad made this claim.

According to the Minister, loans under the programme are distributed among three categories: Tarun (loans up to Rs. 5 lakh), Kishore (loans above Rs. 50,000), and Shishu (loans up to Rs. 50,000). (loans above Rs. 5 lakh and up to Rs. 10 lakh).

Giving more detail of loans provided under the PMMY Scheme in the last three financial years, the Minister stated as below:-

The Minister added that a national sample poll was carried out by the Ministry of Labour and Employment (MoLE) to calculate the number of jobs created by PMMY. According to the survey results, over the course of almost three years, PMMY contributed to the creation of 1.12 crore net new jobs (i.e. from 2015 to 2018).

According to the results of the survey, the Minister indicated that, altogether, loans under the Shishu category accounted for 66% of new jobs created by businesses owned by MUDRA recipients, followed by loans under the Kishore (19%) and Tarun (15%) categories. Additionally, since the start of the Scheme, more than 7.66 billion loans totaling Rs. 6.12 lakh crore have been made available to new entrepreneurs/accounts under PMMY. However, there is no central repository for information on the employment possibilities generated by the PMMY Scheme.

As per data uploaded by Member Lending Institutions (MLIs) on Mudra portal, the Minister gave details of category-wise number of PMMY loans extended across the country, as on 01.07.2022, is as follows:-

The Minister reported that as of June 30, 2022, 1,107 Centers for Financial Literacy (CFL) had been established nationwide, according to information from the Reserve Bank of India (RBI). These financial literacy centres also provide training programmes to encourage entrepreneurship among the nation’s rural residents. Additionally, banks provide training through their Rural Self Employment Training Institutes (RSETIs) with an emphasis on entrepreneurship development for rural youth in order to boost the number of village level entrepreneurs.

The Minister claimed that the National Bank for Agriculture and Rural Development (NABARD), through its Livelihood & Enterprise Development Programmes (LEDPs) and Micro Entrepreneurship Development Programmes (MEDPs), has been promoting skill development for SHG members in rural areas in order to create livelihood opportunities. By educating SHG members through MEDPs and LEDPs, NABARD hopes to empower SHG members to launch microbusinesses in rural areas.

The Minister added that the Start-up Village Entrepreneurship Programme (SVEFINANEP) is being implemented as a sub-scheme under Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM) to assist the rural poor in setting up businesses at the village level in non-agricultural sectors.