Mudra Loans Disbursal Hits Record ₹3.39 Lakh Crore in Q3 FY25

In the third quarter of the fiscal year 2024-25, the Pradhan Mantri Mudra Yojana (PMMY) achieved a historic milestone by disbursing ₹3.39 lakh crore in loans, marking the highest quarterly disbursement since the scheme’s inception in 2015. This significant uptick underscores the government’s ongoing commitment to bolstering micro and small enterprises across India.

Quarterly Performance and Growth

The ₹3.39 lakh crore disbursed in Q3 FY25 represents a substantial increase compared to previous quarters, indicating a robust demand for financial assistance among small businesses. This surge aligns with the government’s efforts to stimulate economic activity at the grassroots level, fostering entrepreneurship and self-employment.

Policy Enhancements and Their Impact

Several policy measures have contributed to this remarkable growth:

Increased Loan Limits: Effective October 24, 2024, the government raised the maximum loan amount under PMMY from ₹10 lakh to ₹20 lakh. This adjustment, announced during the Union Budget 2024-25, introduced the ‘Tarun Plus’ category, enabling successful borrowers to access higher credit limits.

Credit Guarantee Scheme: In July 2024, a new credit guarantee scheme was launched to assist medium and small enterprises in the manufacturing sector. This initiative allows businesses to procure machinery and equipment without collateral, thereby reducing financial barriers and encouraging expansion.

Comparative Analysis with Previous Periods

The current disbursement figures reflect a positive trajectory when compared to past performances:

First Half of FY25: In the first half of FY25, PMMY loans totaled ₹1.86 lakh crore, showing a slight decrease from ₹1.91 lakh crore in the same period of the previous year. Despite this marginal dip, the full-year outlook remains optimistic due to recent policy interventions.

Fiscal Year 2023-24: The entire fiscal year 2023-24 witnessed record disbursements exceeding ₹5.20 lakh crore, surpassing 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 unprecedented disbursement in Q3 FY25 is anticipated to positively influence the full-year financial results. Bankers expect that the enhanced loan limits and supportive schemes will continue to drive growth in disbursements, thereby stimulating economic activities among micro and small enterprises. The government’s focus on financial inclusion and support for marginalized entrepreneurs is expected to sustain this upward trend in the coming quarters.

Summary of the news

Key Point	Details
Why in news	PMMY disbursed a record ₹3.39 lakh crore in loans during Q3 FY25, the highest since its inception.
Scheme Name	Pradhan Mantri Mudra Yojana (PMMY)
New Loan Limit	Revised maximum loan limit: ₹20 lakh under the ‘Tarun Plus’ category (effective October 24, 2024).
Disbursal in FY24	₹5.20 lakh crore (full fiscal year)
Previous Loan Limit	₹10 lakh (before revision to ₹20 lakh).
Year of Inception	2015
Purpose	To provide collateral-free loans to micro and small enterprises.
Credit Guarantee Scheme	Launched in July 2024 for medium and small enterprises in the manufacturing sector.
Q3 FY25 Achievement	Marked the highest quarterly disbursal of loans under PMMY.
Recent Budget Highlights	‘Tarun Plus’ category announced in Union Budget 2024-25 to enhance credit access.