Mudra Loan NPA increases by 126 percent in 1 year
Prime Minister Narendra Modi’s ambitious scheme Prime Minister Mudra Yojana (PMMY) is increasing its distribution target each year, but the number of non-paying loan takers is also increasing. In the last one year, the non-performing assets (NPAs) of the Mudra scheme have risen by 126%.
When is a loan NPA
It is important that according to the rules of the Reserve Bank of India (RBI), if a bank loan installment or loan is not paid for 90 days, then it is assumed to be NPA. In case of other financial institutions, this limit is 120 days.
According to information received from the RTI by a media group, only in the financial year 2018-19, the amount of NPA has increased by Rs 9,204.14 crore. By March 2019, the NPA of the Mudra scheme increased to Rs 16,481.45 crore, while till March 2017, the NPA was Rs 7,277.31 crore.
According to the information, there are a total of 30.57 lakh accounts NPAs under the Mudra scheme. However, in the proportion of the total loan, the value of NPA is not very high, but this habit is increasing steadily.
Information received from RTI revealed that between April 1, 2018 and March 31, 2019, a total of 3.11 lakh crore rupees was distributed under the money scheme. This means that only 2.98 per cent of the total distributed loan is NPA. According to the official website of the Monetary Policy, in the financial year 2019, the amount of loan sanctioned under this scheme has increased by 27 percent.
It has increased from Rs 2.53 lakh crore a year ago to Rs 3.21 lakh crore. Likewise, the total number of loans distributed till March 31, 2019 also increased by 25 per cent to 5.9 crore.
Significantly, the Reserve Bank of India recently warned the finance ministry that the monetary policy can be a major contributor to the growing NPAs of banks. The names of the NPA account holders have not been known by this RTI.
Recently there was a figure that PMMY has achieved tremendous success for the third consecutive year. In the financial year 2018-19, the annual target of debt lending of Rs 3 lakh crore has been surpassed under the Prime Minister’s Money Scheme.
What is the Prime Minister’s Mudra Scheme?
Under the Prime Minister’s Mudra Scheme, loans to the youth of the country are made available against any collateral for starting their own business. The Mudra scheme was launched on April 8, 2015. Three types of loans are given in the Mudra scheme. Under the Shishu Yojana, loan upto Rupees 50000 are given, 50 thousand to 5 lakh rupee loan are sanctioned in Kishore Yojna. Loans between 5 lakh to 10 lakh are granted under the Tarun Yojna.
