PM Mudra loan survey report finalized: Five things you need to know

Pradhan Mantri Mudra Yojana funded 3.91 million people in the first three years of its existence, the final report of the Mudra scheme shows. The report which has been finalized, but yet to be made public, says that while it sanctioned a loan amount of Rs. 5.71 trillion, the number of jobs it created was 11.2 million in the first three years beginning April 2015.

Here are five key takeaways from the report:

Beneficiaries and loan size: There are three category of loans: ‘Shishu’ (upto Rs. 50,000), ‘Kishore’ (between Rs. 50,001to Rs. 500,000 ) and ‘Tarun’ (above 500,000 upto Rs. 10,00,000). Of the total 3.91 million beneficiaries, a maximum of 3.78 million got Shishu loans and 1.1 million got kishore loans. While the average loan size was 36,315 in the first category, it was Rs.214,649 for the middle category and it was Rs. 808,112 for the top category. Most of the Shishu loans were funded by microfinance and non-banking finance corporations.

Employment generation: As per the final report prepared by an expert committee led by B.N. Nanda, the principal labour and employment adviser of the labour ministry, while Shishu loans accounted for almost 7.39 million or around 65% of the estimated net additional employment, the Kishore loans created 2.11 million net jobs and Tarun loans accounted for 1.69 million jobs. Of the total employment, services sector saw the maximum jump of 3.84 million, followed by trading (3.72 million) and allied agri sector (2.27 million).

Job creation among genders: Out of the 11.2 million additional employment generated the survey says, females comprise 62% or 6.89 million. Of the total female employment, the maximum of 6.3 million were created because of Shishu loans. In contrast, most of the employment in the Tarun and Kishore category went to males. For example, of the 2.11 million jobs created due to Tarun loans, 1.66 million jobs went to males.

Utilization of Mudra Loan by beneficiaries: While 21% of those who availed Mudra loan were used for setting up of new establishments, 79% used for expansion of business, the final report said. And 25.9 million of the total beneficiaries were self employed and rests 13.3 million were hired workers.

Imbalance of Mudra Loan distribution: There was high degree of imbalance among states who got benefited from the scheme. Three states including Karnataka, Tamil Nadu, and Mahrashtra accounted for 30% of the total loan disbursed under Mudra scheme.