Lok Sabha Question No. 249 (STARRED), answered on 2018-12-28
Subject: Pradhan Mantri Mudra Yojana
Ministry: FINANCE
Asked by: RANGASWAMY DHRUVANARAYANA

## Government of India Ministry of Finance Department of Financial services

## STARRED QUESTION No.*249 TO BE ANSWERED ON 28th DECEMBER, 2018/ PAUSHA 07, 1940 (SAKA)

## Pradhan Mantri Mudra Yojana

- *249. SHRI R DHRUVA NARAYANA:

Will the Minister of FINANCE be pleased to state:

- a) whether over 90 per cent beneficiaries under the Pradhan Mantri Mudra Yojana (PMMY) were given loan of less than Rs. 50,000 only in which hardly any enterprise can be started;
2. (b) if so, the details thereof;
3. (c) whether the scheme has not made any impact on the incomelasset growth of beneficiaries;
4. (d) if the details thereof; and SO,
5. (e) whether the Government has taken cognizance of this and taken appropriate measures to sanction higher amount under PMMY to set up a micro unit and if so, the details thereof?

## ANSWER

## FINANCE MINISTER (SHRI ARUN JAITLEY)

- (a) to (e): A statement is laid on the Table of the House.

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## STATEMENT REFERRED IN REPLY TO THE LOK SABHA STARRED QUESTION NO\_ *249 TO BE ANSWERED ON 28th DECEMBER, 2018 BY SHRI R DHRUVA NARAYANA REGARDING PRADHAN MANTRI MUDRA YOJANA

- (a) & (b) More than 15.26 crore loans have been sanctioned under the Pradhan Mantri Mudra Yojana (PMMY) since the inception of the scheme. Of these, 54.3% loans have been sanctioned to SC, ST and OBCs. 73.27% of borrowers are women and 27.6% borrowers are new entrepreneurslaccounts: Loans under Pradhan Mantri Mudra Yojana (PMMY) of upto Rs 50,000 are classified as Shishu loans. The share of Shishu category loans in the total loans extended under PMMY is as indicated below:

| Financial Year            |   No. of Shishu Loan lakhs) | Percentage of loan accounts out f total PMMY Loans   |
|---------------------------|-----------------------------|------------------------------------------------------|
| 2015-16                   |                      324.01 | 92.89                                                |
| 2016-17                   |                      364.98 |                                                      |
| 2017-18                   |                      426.69 | 88.65                                                |
| 2018-19 (till 21.12.2018) |                      259.68 | 88.84                                                |

Over 60% of  Shishu loans under PMMY are extended by Micro Finance Institutions (MFIs) and Small Finance Banks (SFBs) Shishu Loans support new as well as existing income generating activities thereby helping to increasing household incomes.

- (c) & (d) An independent study covering PMMY borrowers in 12 states in 2016 has reported that 84% of PMMY borrowers accepted that loans had help increase their revenues by 20% to 30%\_ As per this study, Shishu loans have helped unlock the business potential of small shop owners and vendors by meeting some of their working capital requirements. These loans have helped businesses to add products to their existing offerings and increase inventory to cater to larger set of customers.
- (e) Loans under PMMY upto Rs 10 lakh are already available in three categories namely Shishu; Kishore and Tarun. Borrowers of Shishu loans with good track record of payment enhance their ability to access loans of higher amount from lending institutions under these categories. The average ticket size of PMMY loans and loans under Shishu category have demonstrated an increasing trend year after year.