Pradhan Mantri Mudra Yojana, Scheme, Loan, Details and Benefits

Pradhan Mantri MUDRA Yojana, Scheme, Loan, Details and Benefits

Pradhan Mantri Mudra Yojana Loans for all banks since the launch of the Pradhan Mantri Mudra Yojana Scheme, added up to Rs 46,053.39 crore as bad loans on June 30, 2022.

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About Pradhan Mantri Mudra Yojana (PMMY)

PMMY Launch	It was launched on April 8, 2015 for providing loans up to 10 lakh to the non-corporate, non-farm small/micro enterprises. These loans are classified as MUDRA (Micro Units Development & Refinance Agency Ltd.) loans under PMMY.
Pradhan Mantri Mudra Yojana Objectives	To refinance collateral-free loans provided by the lenders to small borrowers. To bring small enterprises such as NCSBS (Non-Corporate Small Business Sector) and ‘own account enterprises’ under the folds of the formal financial system To extend the affordable credit to MSMEs. To integrate the informal economy into the formal sector.
PMMY Eligibility	Any Indian Citizen who has a business plan for a non-farm sector income generating activity such as manufacturing, processing, trading or service sector and whose credit need is less than Rs 10 lakh. Eligible beneficiaries can approach either a Bank, MFI, or NBFC for availing of MUDRA loans under PMMY.
Pradhan Mantri Mudra Yojana Loans	The scheme has three categories under which loans are disbursed: Shishu – For loan amount up to Rs. 50,000 Kishore –For loan amount from Rs. 50,001 to Rs 5 lakh Tarun – For loan amount more than 5 lakhs and up to Rs 10 lakh Under the guidelines of the MUDRA scheme, it would be ensured that at least 60% of the credit flows to ‘Shishu’ Category Units. There will be no subsidy for the loan given under PMMY.
Pradhan Mantri Mudra Yojana Sectors Covered	Land Transport Sector / Activity: Such as purchase of transport vehicles for goods and personal transport like auto rickshaw etc. Community, Social & Personal Service Activities: Such as saloons, beauty parlors, gymnasium, boutiques etc. Food Products Sector: Such as Papad making, achaar making, jam / jelly making etc. Textile Products Sector: Such as handloom, power loom, chikan work etc.

Pradhan Mantri Mudra Yojana Details

Bad loans under the scheme: Bad loans or NPAs stood at 38 per cent of the total disbursements of Rs 13.64 lakh crore under the scheme during the period, almost half of the banking sector as a whole which stood at 5.97 per cent for the year-ending March 31, 2022.
Category wise bad loans:
- Shishu loans: Within the three categories, the NPAs for Shishu loans were the lowest at 2.25 per cent of disbursements.
- Kishore loans: Bad loans for Kishore loans were the highest at 4.49 per cent.
- Tarun loans: For Tarun loans, bad loans were 29 per cent of disbursements.

Pradhan Mantri Mudra Yojana Loans

- Public sector banks: Public sector banks accounted for almost 46 per cent of all Mudra loans disbursed in value terms till June 30 this year. For them, bad loans during the seven-year period stood at 98 per cent of their disbursements.
- Private sector banks: They account for 36 per cent of the value of loans disbursed under the scheme, but they have far better recovery than public sector banks. For them, bad loans during the seven-year period stood at just 1.32 per cent of their disbursements.
- Regional Rural Banks (RRBs): In terms of value of loans disbursed, they account for 06 per cent of total and their NPAs are at about 4.22 per cent.
- Small Finance Banks: Accounted for 27 per cent of total disbursement and their NPAs stood at 2.79 per cent.

Pradhan Mantri Mudra Yojana Benefits

- In terms of the number of loan accounts, private banks catered to 10.46 crore beneficiaries or almost 53 per cent of the total 19.78 crore loan accounts.
- On the contrary, public sector banks covered just 4.66 crore beneficiaries, or under 24 per cent of the total Mudra loan accounts.
- The share of private sector banks is very high in Shishu category loans, while the share of public sector banks is high in Tarun category loans.