MUDRA – Targeting micro and unorganized businesses

What credit do the small businesses receive ?

Pradhan Mantri MUDRA Yojana launched to increase credit availability to micro enterprises


Potential size of microfinance market: Rs.1.4-2.5 lakh crore at penetration levels of 50-70% 

Only 4% of the 5.77 crore small business units get institutional finance

Priority Sector has higher NPAs at 4.5% compared to 4.0%in non-priority sector


What is the situation of Small business units?

Arunachal Pradesh, Delhi and Mizoram have Gross Value Added of above 1 lakh.

No considerable difference in Female owned proprietorship enterprises, with 17.2% in Rural and 17.5% in Urban owned by women.

30% enterprises engaged in manufacturing, 36% enterprises in trading and 34% enterprises in service sector.


Progress under MUDRA

Only 21.6% of the disbursed credit is under Shishu, despite Government’s targets of 60%. However, contribute 83.2% of the total accounts.

Number of "Tarun" accounts is only 2.5% of total accounts , but amount to almost 30% of total disbursements.