Government of India (GoI) has set the Loan Disbursement Target under Pradhan Mantri MUDRA Yojana (PMMY) at INR 3 trillion for the current Financial Year (FY) 2021-22. It is less than the target set in FY 2020-21 which was INR 3.21 Trillion.
i.The target has been lowered due to the increased allocation under the Emergency Credit Line Guarantee Scheme (ECLGS) for small businesses.
ii.In FY22, as on June 25th, loans worth INR 3,804 crore have been sanctioned by 13 Public Sector Banks (PSBs).
iii. In the previous FY 2020-21, the total loans disbursed under PMMY stood at INR 3.12 trillion, out of the sanctioned amount of INR 3.21 trillion.
iv.In the FY 2019-20, total loans disbursed to the entrepreneurs were at INR 3.29 trillion out of the sanctioned amount of INR 3.37 trillion.
Pradhan Mantri MUDRA Yojana (PMMY)
MUDRA stands for Micro Units Development and Refinance Agency Ltd.
i.It was launched in 2015 by Prime Minister Narendra Modi and is implemented by the Ministry of Finance.
ii.It provides collateral free loans up to INR 10 lakh to the non-corporate, non-farm small/micro enterprises.
iii.It has 3 Categories of loans such as
- Shishu – loans upto INR 50,000
- Kishore – loans from INR 50,000 to 5 lakh
- Tarun – loans from INR 5 lakh to 10 lakh
Micro Units Development & Refinance Agency (MUDRA)
Established in April, 2015, MUDRA is a financial institution, which provides funding to the non-corporate small business sector through Banks, Non-Banking Financial Companies (NBFCs) and Micro Finance Institutions (MFIs)
- The Authorized Capital of MUDRA is INR 1000 Crore & the paid-up capital is INR 750 Crore, fully subscribed by Small Industries Development Bank of India (SIDBI).
- It was initially formed as a wholly-owned subsidiary of Small Industries Development Bank of India (SIDBI) with 100% capital being contributed by it.
Recent Related News
April 9, 2021, The Ministry of Finance has stated that Banks & other Financial Institutions have sanctioned 28.68 Crore beneficiaries worth INR 14.96 Lakh Crore under PMMY, since its launch in 2015.
About MUDRA (Micro Units Development & Refinance Agency)
Established in April 2015 at New Delhi
Chairman – Sivasubramanian Raman
Head Office – Mumbai