MUDRA Scheme: Over Rs 27.75 Lakh Crore Loans Disbursed

Launched in 2015, the Pradhan Mantri MUDRA Yojana (PMMY) has emerged as a game-changer for India’s small and micro-business landscape. This flagship initiative by the government aims to provide institutional credit to these businesses, traditionally underserved by conventional lending institutions. As of November 24, 2023, PMMY has achieved a remarkable milestone, disbursing a staggering Rs 27.75 lakh crore and empowering over 47 crore entrepreneurs across the nation.

By the Numbers: MUDRA’s Widespread Impact

Here’s a deeper look at the numerical impact of the MUDRA scheme:

• Total Disbursement: Rs 27.75 lakh crore (as of Nov 24, 2023)
• Number of Beneficiaries: Over 47 crore entrepreneurs
• Loan Scheme Breakdown:
  • Shishu (up to Rs 50,000): More than 36 crore accounts sanctioned (approx. 77% of total) – These micro-loans are crucial for starting small businesses like street vendors or food stalls.
  • Kishor (Rs 50,000 to Rs 5 lakh): Over 8 crore accounts sanctioned (approx. 17% of total) – This mid-range category caters to businesses with slightly larger requirements, like workshops or garment manufacturing units.
  • Tarun (Rs 5 lakh to Rs 10 lakh): Over 3 crore accounts sanctioned (approx. 6% of total) – Tarun loans support established businesses looking to expand operations or invest in machinery.
• Women Empowerment:
  • 69% of total loans sanctioned granted to women entrepreneurs – This highlights MUDRA’s significant contribution to bridging the gender gap in entrepreneurship.

Beyond Numbers: Socioeconomic Transformation

The MUDRA scheme’s impact transcends mere statistics. It has become a powerful tool for socioeconomic transformation in India. Here’s how:

• Financial Inclusion: MUDRA has brought formal banking services to millions who were previously excluded from traditional lending channels. This financial inclusion fosters a sense of security and empowers entrepreneurs to plan for the future.
• Rural Development: A significant portion of MUDRA loans are disbursed in rural areas. This injects capital into the rural economy, promoting self-employment, and reducing dependence on agriculture.
• Job Creation: MUDRA-funded businesses are major job creators in the informal sector. A 2022 study by the Microfinance Institutions Network estimates that MUDRA loans have enabled the creation of over 1.2 crore new jobs in India.

A Look Ahead: The Journey Continues

The MUDRA scheme’s disbursement figures showcase a steady upward trajectory. The current financial year (2023-24) has already witnessed disbursements exceeding Rs 4.85 lakh crore. This trend is expected to continue as the scheme strives to empower even more entrepreneurs and contribute to India’s ambitious economic goals. With its focus on financial inclusion and MSME (Micro, Small and Medium Enterprises) growth, the MUDRA scheme is well-positioned to play a vital role in India’s journey towards becoming a self-reliant and Aatmanirbhar nation.

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