Loans extended under
the Pradhan Mantri Mudra Yojana (PMMY) during 2016-17 have crossed the
target of Rs. 1,80,000 crore for 2016-17. Sanctions currently stand at
Rs. 1,80,087 crore with final data still awaited from some of the
smaller non-banking lenders. Of this amount, Rs. 1,23,000 crore was lent
by banks while non-banking institutions lent about Rs. 57,000 crore.
Data compiled so far indicates that the number of borrowers this year
were over 4 crore, of which over 70% were women borrowers. About 20% of
the borrowers were from the Scheduled Caste Category, 5% from the
Scheduled Tribe Category, while Other Backward Classes accounted for
almost 35% of the borrowers.
The achievements of both public sector banks and private banks have been
extremely encouraging. The robust growth in bank loans to unfunded and
underfunded segments is an indication of the emergence of this category
of borrowers as a key driver of demand for credit.
The Union Budget has announced a target of Rs. 2.44 lakh crore for Mudra
Loans during 2017-18. There would be a special focus within the Mudra
Scheme on convergence with other government schemes, deepening connect
with borrowers and meeting credit requirements of trainees completing
Mudra Loans are available for non-agricultural activities upto Rs. 10
lakh and activities allied to agriculture such as Dairy, Poultry, Bee
Keeping etc, are also covered. Mudra’s unique features include a Mudra
Card which permits access to Working Capital through ATMs and Card
Machines. Evaluation studies show that banks have been proactive in
identifying and disbursing loans to first time borrowers thereby weaning
them away from money lenders. Borrowers particularly value three
attributes of Mudra Loans viz, non-insistence on guarantor or
collateral, simple documentation and quick processing.