Mudra loan disbursements exceed pre-Covid levels


Pradhan Mantri Mudra Yojana (PMMY) small business loans are back with disbursements even exceeding the pre-Covid level.

Banks and other agencies have disbursed 1.58 lakh crore so far in the current fiscal year, far higher than the ₹ 1.21 lakh crore extended during the same period last year hit by the Covid pandemic, and also exceeded the pre-Covid year (April-December 2019), disbursements of 1.51 lakh crore.

“Apparently there has been greater traction in the segment during the current fiscal year due to the normalization of economic activity, especially in the past three months,” said a field general manager. a public sector bank. Activity area.

Head of Loans Sishu

Mudra loans are granted in three categories: Shishu (up to 50,000), Kishor from 50,000 to 5 lakh) and Tarun (from 5 lakh to 10 lakh). Shishu loans represent the lion’s share of total disbursement at around 48%.

According to a State Bank of India official, there has been a surge in demand for Sishu loans in recent months; this category is now accompanied by an interest subsidy of 2%, announced by the Center as part of the Covid-19 relief program.

Mudra has also extended the deadline for submitting final claims for the 2% Interest Subsidy Program (ISS) until December 31, 2021. Thereafter, “the PMMY portal will be closed for the submission of claims under of the ISS, “he said in a notification.

Surge observed during FY22

Following this pace of growth, bankers expect the overall performance of Mudra loans to be significantly higher this year.

Trends in disbursements over the past few years show a jump in the last three or four months of the fiscal year. Over half of the total loans were disbursed in the last four months of FY19, FY20, and FY21.

In terms of overall performance, Mudra’s penalties in FY21 were less than 3,21,759 yen crore compared to 3,37,495 yen in FY20, mainly due to the impact of blockages and a slowdown in economic activity. In FY19, loans of 3,221,722 cro crore were made to small businesses. According to the latest data, penalties in FY20 totaled 3,337,495 crore, up 5% from FY19.


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