Mudra loans disbursal up 23% at ₹81,597 crore in Q1

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exchange from Credits Pradhan Mantri Mudra Yojana (PMMY) It increased by 23 per cent to ₹81,597 crore in the first quarter of FY24, compared to ₹62,650 crore in the same quarter last year.

“This is the highest ever increase in payments in the first quarter since the program was launched, driven by increased demand for Tarun Loan Class due to Sishu Loan Class A upgrade, among other factors,” said the Mudra official. Business line. In the corresponding period of FY22, the disbursement was around Rs. 37,600 crore.

Mudra loans are offered in three categories – Shishu (up to INR 50,000); Kishore (more than Rs 50,000 and up to INR 5,000); and Tarun (above Rs 5 lakh and up to Rs 10 lakh).

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In the latest financial year ending March 2023, payments on Yojana Small Business Loans (PMMY) hit an all-time high of ₹ 4.50-lakh crores, marking a growth of 34.7 per cent over the previous year’s ₹ 31-lakh crores. According to a senior SBI official, there has been an increase in the average loan size of Mudra, which was at ₹73,489 in FY23.

“Due to increased economic activity in rural and peri-urban areas and better demand forecasts, existing customers prefer to upgrade while there is also demand from first-time customers. However, this pace of growth can lead to a sudden spurt in NPAs.

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Higher spending compared to penalties indicates an improved willingness of borrowers to use credit. The ratio of expenses to the amount subject to penalties an all-time high of 99 percent in FY23“It shows the willingness of borrowers to use sanctioned funds,” said Bibikananda Panda, chief economist, State Bank of India.

Mudra disbursement totaled Rs 3.31 crores, Rs 3.11 crores and Rs 3.29 crores in FY22, 21 and 20 respectively.