Under the MUDRA scheme, launched by Prime Minister Narendra Modi on April 8, 2015, the total NPAs (non-performing assets) are at around 2 per cent of the total loans.
In reply to supplementary queries during Question Hour in the Rajya Sabha, Sitharaman noted that PM-MUDRA is one of the very popular schemes and it has benefitted a lot of small-time entrepreneurs.
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“…Rs 39.48 lakh crore have been sanctioned since the launch of the scheme. So this is one of the biggest bank lending schemes, which has reached people who have no collateral to provide,” Sitharaman said, adding that PM-MUDRA has three components namely Shishu, Kishor and Tarun.
As of March 31, 2025, in Shishu 12.4 per cent is outstanding against the total amount lent. In Kishor, 9.48 per cent is outstanding, while in Tarun, 7.92 per cent is outstanding of the total amount given.
Banks are pursuing to recover these outstanding loans, she said. “Category-wise, if I have to look at specific NPA, it is rather low in Shishu. It is only 1.83 per cent of the amount totally disbursed under that category,” Sitharaman said.
Shishu loans are given to those people who take small amounts to build their businesses.
“So as it is, I would say the total overall NPA in PM-MUDRA itself is only about 2 per cent or in that range, 2.3 per cent, like that. So it is not as if there are huge NPAs, and it is widespread, and therefore we have to take huge action and so on. Most of them live within the vicinity of the banks, and therefore they are in daily, almost daily, contact with the bank, and we are improving now,” the minister said.
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In a written reply, Sitharaman informed that more than 18.37 crore loans amounting to Rs 15.50 lakh crore have been sanctioned under Pradhan Mantri Mudra Yojana during the last three years (April 2022 to March 2025), with about 19 per cent loans to new entrepreneurs/ accounts and 65 per cent loans to women entrepreneurs.
The steps taken by banks for recovery of NPA under PMMY include constant follow-up and increased frequency of customer connect and rescheduling of instalments and One Time Settlement (OTS).