One month ahead of the closure of the current financial year, Mudra loans surpassed total disbursements of last year and are on track to set an all-time record in the current financial year.
As per the latest data, loans worth ₹3.56-lakh crore have been sanctioned, of which ₹3.48-lakh crore have been disbursed as of March 3, 2023.
In the last financial year (FY22), the sanctioned and disbursed loans were at ₹3.39 lakh crore and ₹3.31 lakh crore, respectively.
“The total loans to be sanctioned under PMMY in FY23 could be anywhere between ₹3.80-lakh crore and ₹4-lakh crore, which will be an all-time record in the performance of the Mudra scheme,” a senior Mudra official told. businessline.
Mudra loans are extended in three categories: Shishu (up to ₹50,000), Kishor (above ₹50,000 and up to ₹5 lakh) and Tarun (above ₹5 lakh and up to ₹10 lakh).
According to Debashis Acharya, Professor, School of Economics, University of Hyderabad, it would be interesting to see the composition of the increase among Shishu, Kishore, and Tarun types of loans during the year.
“In absolute number, the amount disbursed has increased in 2022-23 compared to 2021-22. But the year-over-year growth has slowed down as on March though we need to see the full year data next month,””
Also, the number of loans seems to have declined. The dip in 2020-21 must be due to Covid. However, post FY21, the amount of loans disbursed is increasing,” Acharya said.
The increase in quantity and decrease in the number of loans is probably indicative of an increase in the ticket size of loans. So far, Sishu-type loans have been dominant, and this could now be shifting to the other two types of loans gradually.
“There is a definite traction in the rural economy as far as businesses are concerned in the current financial year, which is also reflecting the increase in Tarun and Kishore categories of loans in some regions,” said a senior official of Union Bank of India. .
Some petty businesses were also scaling up to higher categories of loans, he added.