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About 38.58 Cr Loans Extended Since Inception Of PMMY: Govt Tells Parl

He says, PMMY helped generate 1.12 crore net additional employment in the country during approximately 3 years

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The Union Minister of State for Finance Bhagwat Kisanrao Karad in a written reply to a question in Lok Sabha has said that as on 27 January 2023, over 38.58 crore loans have been extended since the inception of the scheme in April 2015. 

As per data uploaded by Member Lending Institutions (MLIs) on the Mudra portal, over 26.35 crore loans have been extended to women entrepreneurs (68 per cent) and 19.84 crore loans to SC, ST and OBC category of borrowers (51 per cent).

The minister further stated that the Ministry of Labour and Employment (MoLE) had conducted a large sample survey at the national level to assess employment generation under PMMY. 

As per the survey results, PMMY helped in generating 1.12 crore net additional employment in the country during a period of approximately 3 years (i.e. from 2015 to 2018).

While talking about the Emergency Credit Line Guarantee Scheme (ECLGS), Karad said that as per the information received from the National Credit Guarantee Trustee Company (NCGTC), guarantees amounting to Rs 3.61 lakh crore have been issued under ECLGS, benefiting 1.19 crore borrowers. 

The minister further stated that as per a research report dated 23 January 2023 of the State Bank of India on ECLGS, almost 14.6 lakh micro, small and medium enterprises (MSME) accounts, of which about 98.3 per cent of the accounts were in the micro and small enterprises categories, were saved. 

In absolute terms, MSME loan accounts worth Rs. 2.2 lakh crore has improved since the inception of ECLGS for the entire banking industry. 

"This means that around 12 per cent of the outstanding MSME credit has been saved from slipping into non-performing asset (NPA) classification due to ECLGS," he added. 

Further, Karad stated that the economic survey 2022-23 states that the credit growth to the MSME sector has been high, over 30.6 per cent, on average during Jan-Nov 2022, supported by the extended ECLGS of the Centre. 

"It adds that the recovery of MSMEs is proceeding at pace, as is evident in the amounts of goods and services tax (GST) they pay, while the ECGLS is easing their debt servicing concerns," he added. 

Giving out more information, he stated that the incidence of NPAs in lending by banks, including in the MSME sector, is attributable to several factors, which include macroeconomic conditions, sectoral issues, the global business environment, governance issues in the borrowing entities, etc.

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