Mudra Loan News: Important Updates and Insights

Over Rs 27.75 Lakh Crore Of Loans Disbursed Under Mudra Loan Scheme

Pradhan Mantri Mudra Yojana (PMMY), since its inception in 2015 has so far benefitted more than 47 crore small/new enterprises. PMMY offers up to ₹10 lakh financial aid to micro/new enterprises to grow their business. Till date, ₹27.75 lakh crores have been disbursed to 47,19,91,954 beneficiaries.

Since 2015-16, PMMY loans have consistently increased with ₹1,32,954.73 crore loan in 2015-2016, ₹1,75,312.13 crore (2016-2017), ₹4,50,423.66 crore (2022-2023), and ₹4,85,309.94 (2023-2024).

A major section of PMMY beneficiaries are women entrepreneurs, comprising 69% (₹30.64 crores loan). Also, a/o 24.11.2023, under Stand-up India (SUPI, 2016), 84% of beneficiaries are women entrepreneurs as the scheme specifically targets women and SC/ST entrepreneurs.

News Updated: 21st March 2024

270 mn loans to women under MUDRA; here’s all you need to know about scheme

Union Minister for Home Affairs Amit Shah on Tuesday declared that the central government has shelled out 270 million MUDRA loans to women entrepreneurs that have empowered the Indian economy with their ‘womanly force’.

The Pradhan Mantri MUDRA Yojana (PMMY) was founded by Prime Minister Narendra Modi on April 8, 2015. The scheme strives to deliver loans up to Rs 10 lakh to non-corporate, non-farm small and micro businesses.

Taking to Twitter, Shah said, “The celebration of womanhood is not a sheer slogan for Prime Minister Modi, and in the nine years of women-led growth, it is now a fact where women have destroyed the glass ceiling in all strolls of life from space to start-ups and defense to domestic affairs, leading the nation to new altitudes.”

He added, “Transforming the tenet of progress PM @narendramodi Ji has evolved an era of #9YearsOfWomenLedDevelopment for the world to marvel at. India reported a record of disbursing 27 Cr. Mudra loans to women entrepreneurs who today entrust the Indian economy with their womanly force.”

The MUDRA loans are provided by commercial banks, regional rural banks, small finance banks, microfinance institutions, and non-banking financial institutions.

MUDRA has developed three products namely- Shishu, Kishore, and Tarun to signify the stage of growth, development, and funding requirements of the beneficiary micro unit and entrepreneur, and also deliver a consideration point for the next phase of graduation and expansion.

The objective of a MUDRA loan is to begin a new business, improve an existing or meet working capital requirements, a PaisaBazaar report stated.

Under the Shishu scheme, applicants can avail of small business loans up to Rs 50,000 to start their new business or to satisfy daily business necessities.

Under the Kishore scheme, borrowers can avail of loans of amounts from Rs 50,000 to Rs 5 lakhs for their existing businesses and for expansion purposes

The Tarun scheme can be availed by established Micro Small and Medium Enterprises (MSMEs), wherein the loan can be availed from Rs 5 lakhs to Rs 10 lakhs.

The Ministry of Finance in a statement dated April 8, 2023, said that since the launch of the MUDRA Yojana till March 24, 2023, nearly Rs 23.2 trillion has been sanctioned in 408.2 million loan accounts.

It also said that about 68 per cent of accounts under the scheme belong to women entrepreneurs and 51 per cent of accounts belong to entrepreneurs of SC/ST and OBC categories. This indicates that the easy availability of praise to the budding entrepreneurs of the country has led to innovation and sustained growth in per capita income.

News Updated: 13th June 2023

Under Mudra Yojana bank sanctioned Rs. 23.4 lakh crore to about 41 crore beneficiaries

The Mudra Yojana was introduced in 2015, and since then the banks and financial industry have passed Rs. 23.2 lakh crore for distribution and 40.82 crores for beneficiaries. PM Narendra Modi started Pradhan Mantri MUDRA Yojana on April 8, 2015, to make easy access, collateral-free for small industries available to non-cooperate, non-farm small, and entrepreneurs to generate income.

The accounts under this scheme are of women business owners for about 68% and 51% are for business owners under SC/ST and OBC categories. This indicates how free access to finance for the nation’s aspiring entrepreneurs has sparked innovation and maintained growth in per capita income, according to Nirmala Sitharaman.

The finance minister emphasized domestic growth through MSMEs, saying, “The expansion of MSMEs has contributed tremendously to the ‘Make in India’ program, as strong domestic MSMEs lead to higher indigenous production for both internal markets and for exports Banks were asked to offer collateral-free loans up to Rs 10 lakh in three categories: Shishu (up to Rs 50,000), Kishore (Rs 50,000-5 lakhs), and Tarun (up to Rs 10 lakh) as part of the scheme, to support small enterprises.

News Updated Date: 04 May 2023

70 Percent Mudra Loan Beneficiaries Are Women: PM Modi

Prime Minister Narendra Modi spoke up about the fact that women make up 70% of those who receive Mudra loans, and they also gain from schemes to promote collateral-free loans through SVANidhi, as well as schemes to promote rural industries including agriculture, fishing, FPOs, and animal husbandry. The 11th in a series of 12 post-budget webinars on the Union Budget 2023, PM Modi was discussing the topic of “Economic Empowerment of Women” at the time. He highlighted the Mahila Samman Saving Certificate Program, which offers women 7.5% interest.

“80 thousand crore rupees for PM Awas Yojna is also a step in the direction of women empowerment as most of the 3 crore houses are in the name of women”, PM said.

News Updated Date: 20th March 2022

Exploring the Benefits of Mudra Yojana for MSMEs: How Young Entrepreneurs Are Making Their Dreams Come True

The Mudra Yojana, launched by Prime Minister Narendra Modi in April 2015, has enabled entrepreneurship across India. According to the latest data, over 8 crore youth have become entrepreneurs for the first time with the help of these loans. Not only that but an impressive 38 crore Mudra loans have been provided throughout India, with the majority of them going to women and those belonging to SC/ST/OBC classes.

The scheme is designed to provide collateral-free institutional credit by member lending institutions, ensuring that even those who may not have access to traditional sources of finance are given a chance. The scheme has been particularly beneficial for those in rural areas, allowing them to start and grow their business ventures.

It is encouraging to see Prime Minister Modi’s initiative providing such positive results. With more people engaging in entrepreneurial activities, there is sure to be an upliftment in the country’s economy as a whole. We hope that the Mudra Yojana continues its successful journey and provides more opportunities for budding entrepreneurs!

News Updated Date: 28th February 2022

Small is good: Mudra loan NPAs at just 3.3% in 7 years

Bad loans under the Pradhan Mantri MUDRA Yojana for all banks since the launch of the scheme on April 8, 2015, added up to Rs 46,053.39 crore as on June 30, 2022.

The scheme was launched by the Prime Minister on April 8, 2015, for delivering loans up to 10 lakh to non-corporate, non-farm small/micro corporations.

These loans are categorized as MUDRA loans under PMMY.

Under PMMY loans are provided up to Rs. 10 Lakh through Member Lending Institutions (MLIs) viz; Banks, Non-Banking Financial Companies (NBFCs), Micro Financial Institutions (MFIs), other financial intermediaries, in three categories namely, ‘Shishu’, ‘Kishore’ and ‘Tarun’ which symbolizes the phase of growth or evolution and funding necessities of the borrowers.

Shishu: covering loans up to Rs. 50,000/-

Kishore: covering loans above Rs. 50,000/- and up to Rs. 5 lakh

Tarun: covering loans above Rs. 5 lakh and up to Rs. 10 lakh

To indicate the stage of growth, evolution, and funding demands of the beneficiary entrepreneur and also deliver a reference point for the successive phase of development.

News Updated Date: 16th December 2022

MUDRA scheme Loan worth Rs 20 lakh crore

The Centre’s MUDRA program, which aims to give young people possibilities for self-employment, has so far awarded loans of Rs 20 lakh crore, according to Prime Minister Narendra Modi, who also noted that Maharashtra was one of the recipients. In a video played during an event here to give appointment letters as part of the Maharashtra government’s goal to employ 75,000 people, Modi claimed that his administration also offered support to start-ups and small businesses.

The Modi administration introduced the Pradhan Mantri MUDRA Yojana (PMMY) program in April 2015 to offer loans up to Rs. 10 lakh to non-corporate, non-farm small/micro businesses. Youths have a significant impact on India’s development. Self-help groups (SHGs) are promoted in rural areas. Funds of up to Rs 5.5 lakh crore have been given to 8 crore women who have worked in SHGs over the past 8 years. SHGs have produced employment and manufacturing possibilities. Employment possibilities are being generated because infrastructure investment is being made, according to Modi.

According to the prime minister, there are currently ongoing road development projects of Rs 50,000 crore and railway projects of Rs 75,000 crore, which have generated employment prospects.

News Updated Date: 7th November 2022

70% Of Mudra Loans Are Given To Women Business Owners: PM

At a conference in Karahal, Madhya Pradesh, the Prime Minister stated that 19 trillion rupees loans had been allotted to small enterprises throughout the nation.

Women-owned businesses have availed of almost 70% of these loans. Mr Modi also remarked that the Jan Dhan bank accounts had significantly aided the country’s efforts to empower women. The government has made it possible for more than 2 crore women in the nation to buy homes. He noted, Women’s economic empowerment makes them equally powerful in society. Greater gender representation in any industry directly correlates with tremendous success. Under the PM Kaushal Vikas Yojana, he also opened four skill-training facilities for Particularly Vulnerable Tribal Groups (PVTG).

News Updated Date: 23rd September 2022

NPAS From MUDRA Loans In Maharashtra At 16.32% Till June 2022: Official Data

As of June 2022, unpaid loans under the Pradhan Mantri MUDRA Yojana, which supports small companies, totaled close to 5,000 crores, or 16.32% of all banking assets in Maharashtra.

According to data, the Parbhani district in the underdeveloped Marathwada area of Maharashtra has the highest non-performing assets (NPA), at 60.54%. Monday saw a state ceremony in Aurangabad. According to the report, more than 52 lakh borrowers in Maharashtra borrowed $30,019 crore through the MUDRA scheme in June 2022. 6,19 lakh debtors borrowed 4,898 crores of this total was categorized as NPA.

Mumbai has the third-highest MUDRA NPA with a 29.97% rate and a 248 crore outstanding balance. Banks in the private sector had NPAs totaling 435 crores. Eight smaller financial institutions had 104 crores in NPA, while two regional rural banks had 325 crores in NPA.

News Updated Date: 17th September 2022

Pradhan Mantri Mudra Yojana (PMMY) extends loans to encourage business enthusiasts

Sri BhanuPratap Singh Verma, the minister of State for Micro, Small and Medium Enterprises has addressed that the Government will be taking new initiatives to extend loans for Micro, Small and Medium Enterprises (MSMEs) with respect to their working capital requirements which includes loans up to Rs. 5 Lakh crore under Emergency Credit Line Guarantee Scheme for MSMEs and businesses with a period extending to 31st March 2023.

The initiative also includes PM Street Vendor’s Atma Nirbhar Nidhi scheme, which means a collateral free working capital loan for street vendors. Adding to this, the MSMEs have been given an assistance for their working capital requirements by some schemes like:

Credit Guarantee Scheme for credit delivery and ease of flow of credit without collateral up to Rs. 200 Lakhs
The PMMY extends loans up to Rs. 10 Lakhs for entrepreneurs without collateral.

Updated Date: 17th August 2022

The Future of MSMEs: Collateral Free Automatic Loans

In recent years, the Government has taken several steps to stay afloat and address the regular requirement of working capital that includes small ticket size loan by Micro, Small, and Medium Enterprises (MSMEs). They are:

Collateral Free Automatic Loans under Emergency Credit Line Guarantee Scheme or ECLGS under which the collateral free automatic loans, with additional funds for hospitality and associated businesses, have increased from Rs. 50,000 crore to Rs. 5 lakh crore with extended validity till 31.03. 2023
PM Street Vendor’s Atma Nirbhar Scheme (PM SVANidhi).
Rs. 20,000 Crore Credit Guarantee Scheme for Subordinate Debt (CGSSD) with extended validity till 31.03.2023.

PM Mudra Yojana

Under the PM Mudra Yojana, offered by the Bank of Baroda, the Central Government is giving out loans ranging from 50,000 to 10 lakh rupees. One must be aware of the crucial information in order to take advantage of this opportunity. Loan amounts range from 50,000 to 10 lakh rupees, and repayment terms range from 12 to 84 months. The PM Mudra Yojana was introduced by the Modi administration at the national level to aid citizens.People can comfortably accomplish their retail demands in this way.To obtain a loan, no extensive procedures are necessary.You can receive your loan amount while at home in 5 minutes.You may easily apply for this online as well.

News Updated Date: 30 May 2023

MSMEs have also been supported by ongoing schemes like:

Credit Guarantee Scheme (CGS) that strengthens credit delivery system and facilitates the flow of credit upto Rs. 200 lakh without any collateral or third-party guarantee.
Pradhan Mantri MUDRA Yojana (PMYY) that gives collateral free loans upto Rs. 10 lakh.

Updated Date: 09 August 2022

Modi Govt. Completes 8 Years with 35 Crore sanctioned Mudra Loans & 23 Crore Women Beneficiaries

The Mudra scheme was launched by Prime Minister Narendra Modi back in 2015. It was aimed at benefiting the micro industries and any other individual businesses which required loans of up to 10 Lakh. Now, after 8 years of the Modi government, it has been reported that 35 crores worth of Mudra loans were sanctioned for which 23 crores were for the women beneficiaries under the scheme. This has proved to be a very empowering thing for the women in India who wish to start their own entrepreneurship stage. Within the last four years, the loan volume has actually come down below 5 crores within the FY 2021-22. Some other data has also suggested that there has been about 500% of growth for women entrepreneurs on the GeM, which is the government’s e-commerce portal Government eMarketplace.

Updated Date: 22nd June 2022

Mudra Scheme Empowers Indians To Become Job Creators: PM

Indian PM Narendra Modi took to his Twitter handle to praise the accomplishments of the Pradhan Mantri Mudra Yojna on Friday. He said that many young Indians have benefitted from the scheme.

It has also given them a medium to display their abilities in the entrepreneurial sector. Seven years since the beginning of this project, it has been deemed a game-changer for the nation’s prosperity as a whole. Using the principle of unfunded funding, a loan of up to INR 10 lacs can be given to small businesses.

The three types of Mudra Yojna are namely, Shishu loan (Up to INR 50,000), Kishore loan (INR 50,000 to INR 5 lacs), and Tarun loan (INR 5 lacs to INR 10 lacs). These are available to MSMEs as collateral-free loans. The main divisions which benefit from this are agriculture, service, manufacturing, and trading.

News Updated Date: 19th April 2022

68% Beneficiaries Under MUDRA Scheme Women: Govt

Women, mostly from SC and ST groups and minority families, account for 68% of the Rs 32 crore loans issued under the Micro Units Development and Refinance Agency initiative. In addition, more than 23 crore women now have bank accounts for the first time in their lives thanks to PM Modi’s leadership, as Union Minister Smriti Irani told the Rajya Sabha on Wednesday. They presented their business plans and got support from the Mudra Yojana. She also mentioned that the government looks forward to giving full recognition to the women workforce and ensuring that up to 1 crore goes to women-run enterprises.

Irani acknowledged the government’s commitment to women’s emancipation which involves training from Industrial Training Institutes under the Pradhan Mantri Kaushal Vikas Yojana. Under the digital literacy program, out of 4 crore Indians, 54% are women. To improve job potential, under Pradhan Mantri Mudra Yojana, Rs. 23.02 crore has been distributed among women entrepreneurs.

News Updated Date: 05-04-2022

Banks will have to be a lot friendly while serving customers, says Finance Minister

Union Finance Minister Nirmala Sitharaman advised banks to be friendlier while serving their customers. She stated that Prime Minister Narendra Modi has always encouraged people to avail of loan facilities as MUDRA and SVANIDHI schemes ensure collateral-free loans.

The chairman of SBI, Dinesh Khara, discussed that the credit guarantee yojanas are getting popular among the startups that need equity and ascertained that the banks are keen to back them and trying everything to enhance their servicing quality. Credible cash flow will make the lending process easy for MSMEs. Balance sheets of the banks and the corporate sector have shown impressive progress, revealed Revenue Secretary Tarun Bajaj, adding that the government will appreciate an economy-friendly high growth rate in the upcoming years. Many other finance-related issues, including firming the Production Linked Incentive Schemes and domestic manufacturing, popped up during the interaction.

Updated Date: 14-03-2022

Emergency Credit Line Guarantee Scheme

Mukhtar Ahmad, a resident of Srinagar, saw the lights of new hope after introducing the Emergency Credit Line Guarantee Scheme (ECLGS) in May 2020 by the Union Finance Ministry. In 2019 his PoP manufacturing business fell after suffering huge losses; he couldn’t even pay the loan installments timely. Then taking advantage of this scheme helped him recover from such a horrible situation. He stated that all his worries went away after he entered into the scheme; it became a saviour for small and medium-sized businesses. ECGLS gave a big push to the pandemic-affected economy of India. Nirmala Sitharaman, Union Finance Minister, stated that they postponed the time of its abolishment to March 2023. The stats published after its introduction point out the differences between then and now. The business owners got immensely benefitted through this scheme.

Updated Date: 25-02-2022

Over 29.55 Crores loans sanctioned under the Pradhan Mantri Mudra Yojana (PMMY)

Union Minister of State for Finance, Dr Bhagwat Kisanrao Karad in recent meeting informed the Lok Sabha that over 29.55 crore loans have been sanctioned under the PMMY scheme since its inauguration in 2015 and the loans have amounted up to around INR 15.52 lakhs crores. Under the PMMY scheme the companies that fall under the Micro Small and Medium Enterprises sector can avail credit upto INR 10 lakhs for their activities by the Member Lending Institutions (MLI) of the scheme.

Out of the 29.55 Crore loans, around 6.8 Crore loans amounting to INR 5.2 lakh crores has been provided to startup companies and new entrepreneurs as these companies require a base fund to handle even its basic operating costs and the loans under the Pradhan Mantri Mudra Yojana (PMMY) and Stand-Up India Scheme (SUPI) which are implemented by the Department of Financial Services provide them the required boost they need to sustain their businesses.

Updated Date: 17-08-2021

Mudra loans: Around 87% of the loan amount was sanctioned in first quarter of FY22

Pradhan Mantri Mudra Yojana (PMMY), the scheme PM Modi launched in 2015, lays emphasis on Entrepreneurship and self-employment. Under this scheme around 87 percent of the total loan amount that was sanctioned in the first three months of the financial year (FY) 2021-22 has been disbursed. In the period from April 1 to July 9 of 2021a total of 76,69,969 applications were received involving Rs.44225.74 crores of loan amount. Out of this, a sum of Rs 38668.03 crores has been disbursed in the period from April 1 to July 9. Mukesh Mohan Gupta, President of Chamber of Indian Micro, Small & Medium Enterprises (CIMSME) told Financial Express Online that lthough people were skeptical in starting new business during the lockdown period, yet a considerable amount of loans were sanctioned to Micro Entrepreneurs.

Updated Date: 16-07-2021

Fraud in the name of PMMY

This is a real story of how a man of Mumbai, was duped of Rs.55,000 when he fell prey to a cyber fraudster. On 15th of March, a person called Priya Mishra rang Pramod Jadhav. She told him that her department (PMMY) has started a loan distribution scheme between Rs.50,000 to Rs. 20,00,000 exclusively for women. Initially, Priya asked Pramod to pay Rs.1000 as processing fees for the loan and he was also asked to submit the Aadhar Card and Pan Card of his wife which he did. The very next day Priya asked him to pay the insurance charges of Rs.18,150 and then demanded Rs. 36,200 as loan approval fees.

Jadhav was then asked to pay 6% of the loan amount as GST that was equal to Rs. 1.2 lakh. At that point Pramod refused to pay more money and asked her to take that money from the loan amount. When Priya denied, Pramod demanded his money back from her. Since then she stopped talking to him. Sensing something fishy Jadhav wrote to the Prime Minister’s office. A few days later they clarified that it was a fraud. Jadhav then lodged a complaint in the Agripada police station.

Updated Date: 27-06-2021

Mudra Loan News

PM Mudra Yojana

News Updated Date: 30 May 2023

MSMEs have also been supported by ongoing schemes like:

Credit Guarantee Scheme (CGS) that strengthens credit delivery system and facilitates the flow of credit upto Rs. 200 lakh without any collateral or third-party guarantee.
Pradhan Mantri MUDRA Yojana (PMYY) that gives collateral free loans upto Rs. 10 lakh.

Updated Date: 09 August 2022

Modi Govt. Completes 8 Years with 35 Crore sanctioned Mudra Loans & 23 Crore Women Beneficiaries

Updated Date: 22nd June 2022

Mudra Scheme Empowers Indians To Become Job Creators: PM

Indian PM Narendra Modi took to his Twitter handle to praise the accomplishments of the Pradhan Mantri Mudra Yojna on Friday. He said that many young Indians have benefitted from the scheme.

News Updated Date: 19th April 2022

68% Beneficiaries Under MUDRA Scheme Women: Govt

Women, mostly from SC and ST groups and minority families, account for 68% of the Rs 32 crore loans issued under the Micro Units Development and Refinance Agency initiative. In addition, more than 23 crore women now have bank accounts for the first time in their lives thanks to PM Modi’s leadership, as Union Minister Smriti Irani told the Rajya Sabha on Wednesday. They presented their business plans and got support from the Mudra Yojana. She also mentioned that government looks forward to giving full recognition to the women workforce and ensuring that up to 1 crore goes to women-run enterprises.

Irani acknowledged the government’s commitment to women’s emancipation which involves training from Industrial Training Institutes under the Pradhanmantri Kaushal Vikas Yojana. Under the digital literacy program, out of 4 crore Indians, 54% are women. To improve job potential, under Pradhan Mantri Mudra Yojana, Rs. 23.02 crore has been distributed among women entrepreneurs.

News Updated Date: 05-04-2022