According to a State Bank of India (SBI) research, Mudra loan approvals and disbursements reached a record high in FY23 and the ticket size had almost doubled

Due to the post-Covid demand from the country's hinterlands, the number of loans up to US$ 12,161.23 (Rs. 10 lakh), approved and granted under the Pradhan Mantri Mudra Yojana (PMMY) to micro and small companies increased to an all-time high. The sanctioned loan volume hit a new high of US$ 760,000 (Rs. 6.23 crore) in FY23 from its previous peak of US$ 650,000 (Rs. 5.37 crore) loans sanctioned in FY22.

According to data, the loan amount disbursed also increased from about US$ 400,000 (Rs. 3.31 crore) in FY22 to US$ 550,000 (Rs. 4.50 crore) in FY23.

The loan disbursal rose by almost 36% in FY23, according to the study by the State Bank of India (SBI) Group Chief Economic Adviser, Mr. Soumya Kanti Ghosh.

In addition, the average ticket size of Mudra loans increased by almost 20% over the course of the last eight years, from about US$ 462.13 (Rs. 38,000) in FY16 to about US$ 875.61 (Rs. 72,000) in FY23. The research also noted encouraging trends in the disbursement of Tarun and Kishor variants of the scheme, which have higher loan limits and are intended to address the “missing middle problem" in enterprise growth.

Three categories of Mudra loans have been established: Shishu loans up to US$ 608 (Rs. 50,000), Kishore loans above US$ 608 (Rs. 50,000) and up to US$ 6,081 (Rs. 5 lakh), and Tarun loans over US$ 6,081 (Rs. 5 lakh) and up to US$ 12,160 (Rs. 10 lakh). The Shishu category accounts for almost 40% of all loans approved under the MUDRA system.

The report stated that Mudra now appears destined for higher glories, benefiting the social fabric of the country by bringing financial freedom to marginalised groups of women, minorities, SCs, STs, and OBCs as well as fuelling new age entrepreneurship across manufacturing/ services/ trade. Mudra had successfully weathered the pandemic blunt in both disbursals as well as the number of accounts.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.