At ₹1,86,284 crore, Mudra loans show marginal dip in H1
Hyderabad
For the first time after Covid-19, disbursal of Pradhan Mantri Mudra Yojana (PMMY) loans showed a dip in the first half of the current financial year at ₹1,86,284 crore as of September, compared to ₹1,91,863 crore in the same period last year.
“These are provisional numbers as on September 27, 2024. Even if the disbursal slightly edges up, it will remain below the same period last year marginally,’‘ a senior Murdra official told businessline.
“The marginal fall should not be seen as a dip as the first half of the last fiscal saw record growth of about 40 per cent in PMMY disbursals compared to the previous year. The high base effect should be factored in while examining the numbers,’‘ he said.
The financial year 2023-24 was exceptionally good for Mudra as loan disbursals under PMMY registered a record growth and crossed the milestone of ₹5 lakh crore for the first time after the introduction of the scheme in 2015.
Full year
The bankers, however, expect growth in disbursals for the full year. “The recent Government decision to enhance the cap on Mudra loans from ₹10 lakh to ₹20 lakh for borrowers who have successfully repaid previous loans is likely to drive not only the growth in the disbursals but also in the economic activity. This may reflect in the performance of PMMY in full year numbers of FY25,’‘ a senior SBI official said.
Mudra loans are given in three categories of Sishu (up to ₹50,000), Kishore (above ₹50,000 and up to ₹ 5 lakh) and Tarun (above ₹5 lakh and up to ₹10 lakh). From this year, for loanees with a good repayment history, ₹20 lakh will be given only on the discretion of the banks.
BAD LOANS
The non-performing assets (NPAs) have also been coming down. According to data from the Ministry of Finance, there has been a steady decline in NPAs of PMMY loans. They came down to 3.4 percent in 2023-24 from 4.9 per cent in 2019-20.