Lok Sabha Question No. 3555 (UNSTARRED), answered on 2021-12-20
Subject: Loan to Women Entrepreneurs under PMMY
Ministry: FINANCE
Asked by: Sunil Baburao Mendhe

## Government of India

## Ministry of Finance

## Department of Financial services

## LOK SABHA UNSTARRED QUESTION No. 3555

ANSWERED ON DECEMBER 20, 2021/ AGRAHAYANA 29, 1943 (SAKA)

## Loan to Women Entrepreneurs under PMMY

3555. SHRI SUNIL BABURAO MENDHE:

Will the Minister of FINANCE be pleased to state:

- (a) whether it is a fact that women entrepreneurs are being provided loan on priority to set up industries under Pradhan Mantri Mudra Yojana (PMMY);
- (b) if so, the details of targets given to banks for providing loans to women entrepreneurs under the scheme during current financial year in Maharashtra;
- (c) whether it is also a fact that a large number of loan applications are being rejected on technical grounds;
- (d) if so, whether the Government would issue proper directions to banks for correction of the mistakes found in the applications and accepting them; and
- (e) if so, the details thereof?

## ANSWER

Minister of State in the Ministry of Finance

(DR. BHAGWAT KARAD)

- (a) Under Pradhan Mantri Mudra Yojana (PMMY), institutional credit up to Rs. 10 lakh is provided by Member Lending Institutions (MLIs) to micro/small entrepreneurs, including Women,  for  income  generating  activities  in  sectors  such  as  manufacturing,  trading, services and activities allied to agriculture.

As per data uploaded by MLIs on Mudra portal, as on 26.11.2021, the details of loans availed by Women entrepreneurs under the Scheme is as follows:-

|                               | No. of A/Cs (in crore) Sanctioned   | No. of A/Cs (in crore) Sanctioned   | Amount (in Rs. Lakh crore)   |
|-------------------------------|-------------------------------------|-------------------------------------|------------------------------|
| All India                     | 32.11                               | 32.11                               | 17.00                        |
| Out of which                  | Out of which                        | Out of which                        | Out of which                 |
| Women Entrepreneurs           | 21.73                               | 7.42                                | 7.42                         |
| %share of Women Entrepreneurs | 68%                                 |                                     | 44%                          |

- (b)  The  Government allocates annual targets for the amount to be sanctioned under PMMY to MLIs i.e. Scheduled Commercial Banks (SCBs), Regional Rural Banks (RRBs), Non Banking Financial Companies (NBFCs) and Micro Finance Institutions (MFIs).  For the current financial year (FY), a target of sanction of Rs. 3.00 lakh crore has been fixed for MLIs.  State/UT-wise and Gender-wise targets are not allocated by Government under PMMY.
- (c)  to  (e)  Loans  under  the  Scheme  are  extended  by  MLIs  as  per  their  commercial parameters, based on their Board-approved policy and extant Reserve Bank of India (RBI) guidelines which, inter-alia includes, viability of project, assessment of repayment capacity of the borrower etc. Any complaints received in respect of implementation of PMMY, including turning down of loan applications, are redressed in coordination with the respective banks.

A number of steps have been taken to improve implementation of the Scheme which inter alia , include:

- i.  handholding support for facilitating submission of loan applications;
- ii.  provision for online applications through psbloansin59minutes and udyamimitra portal;
- iii.  intensive  publicity  campaigns  for  increased  visibility  of  the  scheme  amongst  the stakeholders;
- iv.  simplification of application forms;
- v.  nomination of Mudra Nodal Officers in Public Sector Banks (PSBs);
- vi.  periodic monitoring of performance of PSBs with regard to PMMY etc.

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