Mudra Loan Disbursements Reach Record ₹3.39 Lakh Crore in Q3 FY25

In Q3 FY25, the Pradhan Mantri Mudra Yojana (PMMY) achieved a record disbursal of ₹3.39 lakh crore, fueled by higher loan limits, the launch of the 'Tarun Plus' category, and enhanced credit guarantee schemes.

In Q3 of FY25, the Pradhan Mantri Mudra Yojana (PMMY) reached a historic milestone by disbursing ₹3.39 lakh crore in loans, marking the highest quarterly disbursement since its launch in 2015. This achievement highlights the government's ongoing efforts to support micro and small enterprises across India.

Quarterly Performance and Growth
The ₹3.39 lakh crore disbursed in Q3 FY25 shows a significant increase from previous quarters, reflecting a strong demand for financial support among small businesses. This surge aligns with the government’s focus on stimulating economic growth at the grassroots level, promoting entrepreneurship and self-employment.

Policy Enhancements and Their Impact
Several policy initiatives have driven this growth:

Increased Loan Limits: Starting October 24, 2024, the government raised the maximum loan amount under PMMY from ₹10 lakh to ₹20 lakh, introducing the ‘Tarun Plus’ category to enable borrowers to access higher credit limits.
Credit Guarantee Scheme: Launched in July 2024, this scheme assists medium and small enterprises in the manufacturing sector, allowing them to obtain machinery and equipment without collateral, thus reducing financial barriers and fostering expansion.

Comparative Analysis with Previous Periods
The current disbursement figures reflect a positive trend when compared to previous periods:

First Half of FY25: In the first half of FY25, PMMY loans amounted to ₹1.86 lakh crore, slightly down from ₹1.91 lakh crore during the same period the previous year. However, the full-year outlook remains promising due to recent policy changes.
Fiscal Year 2023-24: In FY24, PMMY loans surpassed ₹5.20 lakh crore, outpacing the ₹4.40 lakh crore disbursed in FY23. This growth was driven by lower delinquency rates and proactive monitoring by public sector banks.

Outlook and Future Projections
The record disbursement in Q3 FY25 is expected to positively impact the full-year results. With the enhanced loan limits and supportive schemes, banks anticipate continued growth in disbursements, fueling economic activities among micro and small enterprises. The government’s commitment to financial inclusion and support for marginalized entrepreneurs is expected to sustain this upward momentum in the coming quarters.

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