The number of loans sanctioned to micro and small enterprises under Pradhan Mantri Mudra Yojna(PMMY) has decreased by 5 crores in the financial year 2021-22. According to the official data, it is the lowest in the past four years. A total of 4.89 crore loans amounting to Rs 3,10,563.84 crore were sanctioned, out of which Rs 3,02,948.49 crore loans were disturbed in FY22.
The sharp drop in Mudra sanctions and disbursements is mainly due to the government’s Emergency Credit Line Guarantee Scheme (ECLGS). The government had trim downed the Mudra loans disbursement target for lenders to Rs 3 lakh crore in FY22.
The lending firms could meet the Rs 3-lakh-crore disbursement target set by the government for FY22 despite the lowest disbursements in four years. However, the target was reduced by the government vis-a-vis FY21 sanctions and disbursements. Experts believe that this was due to the increase in ECLGS limits by the government last year to Rs 4.5 lakh crore and further to Rs 5 lakh crore this year.
