(1/16) 🧵on MUDRA loans. As a founding board member of Bandhan Bank till 2018, I've seen +ve impact of loans even of ₹25K on the poor. I’m quite surprised by @PChidambaram_IN questioning impact of loans of ₹3.73lakhs.🧵shows clearly +ve impact of MUDRA.
(1a/16) MUDRA Growth
The Pradhan Mantri Mudra Yojana (PMMY), completed 7 years of its operations, extending a cumulative amount of 18.83 lakh crore to 34.93 crore loan accounts, primarily benefitting the borrowers of weaker sections of the society.
The Pradhan Mantri Mudra Yojana (PMMY), completed 7 years of its operations, extending a cumulative amount of 18.83 lakh crore to 34.93 crore loan accounts, primarily benefitting the borrowers of weaker sections of the society.
(1b/16) MUDRA Growth
In the last 7 years, the total amount sanctioned and disbursed recorded an enormous growth of about 150%. The number of loan accounts grew by 54%. In 2021-22, the average loan size has grown by 62% since 2015-16.
In the last 7 years, the total amount sanctioned and disbursed recorded an enormous growth of about 150%. The number of loan accounts grew by 54%. In 2021-22, the average loan size has grown by 62% since 2015-16.
(2/16) Loan disbursements: Kishore loans (40%) account for max share, followed by Shishu (37%) and Tarun loans (22%). Since 2015, loan disbursements of Kishore scheme (225%) recorded max growth, followed by Tarun scheme (148%) and Shishu scheme (100%).
(3/16) Financial Results Total income for MUDRA Ltd for year 2020-21 was ₹1,006.67cr, resulting into a profit of ₹256.32cr. Income & profits of MUDRA has grown since 2015 by 177% and 289% respectively suggesting NPAs have been under control.
(4/16) Financing of Women
In 2021-22, 3.84 cr women were funded out of the total number of 5.38 cr accounts, which is a whopping 71%. Since 2015, the number of women accounts and loan disbursements have recorded a growth of 40% and 160% respectively.
In 2021-22, 3.84 cr women were funded out of the total number of 5.38 cr accounts, which is a whopping 71%. Since 2015, the number of women accounts and loan disbursements have recorded a growth of 40% and 160% respectively.
(5/16) Financing of SC/ST/OBC:
In 2021-22, the SC/ ST/OBCs borrowers accounted for 52% of MUDRA loan accounts & 37% of loan amount disbursed. Shares of SC, ST & OBC category borrowers were 11%, 4% and 22%, respectively, in terms of total loans disbursed.
In 2021-22, the SC/ ST/OBCs borrowers accounted for 52% of MUDRA loan accounts & 37% of loan amount disbursed. Shares of SC, ST & OBC category borrowers were 11%, 4% and 22%, respectively, in terms of total loans disbursed.
(6/16) Financing for new Entrepreneurs:
Despite the tough times, nearly 65 lakh new loan accounts were sanctioned under PMMY during 2021-22. New loan accounts stood at 12% of total loan accounts in FY 2021-2022, and 21% of the total disbursed amount.
Despite the tough times, nearly 65 lakh new loan accounts were sanctioned under PMMY during 2021-22. New loan accounts stood at 12% of total loan accounts in FY 2021-2022, and 21% of the total disbursed amount.
(7/16) Financing for Minority:
In last 7 yrs, number of accounts & loan disbursements to minorities have grown by 82% and 201% respectively. They accounted for 14% and 12% respectively in terms of number of accounts and amount disbursed in 2021-2022.
In last 7 yrs, number of accounts & loan disbursements to minorities have grown by 82% and 201% respectively. They accounted for 14% and 12% respectively in terms of number of accounts and amount disbursed in 2021-2022.
(8/16) MUDRA and Poverty:
A study conducted on the MUDRA beneficiaries of Jammu and Kashmir suggests that larger access to finance has helped in reducing the multidimensional poverty (Salgotra, Kandari, Bahuguna, 2020) koreascience.or.kr.
A study conducted on the MUDRA beneficiaries of Jammu and Kashmir suggests that larger access to finance has helped in reducing the multidimensional poverty (Salgotra, Kandari, Bahuguna, 2020) koreascience.or.kr.
(9/16) Loans had positive impact on standard of living (SOL), health, & education, thereby improving lives of poor. Largest ↑ is in standard of living (18%), followed by heath (10%) & education (9%) (Salgotra, Kandari, Bahuguna, 2020)
(9a/16) MUDRA & Households
↑ financial access, enabled higher income, purchasing power & expenditure. This led to ↑ in durable assets, clean floor, improved clean drinking water facilities & clean cooking fuel etc. (Salgotra, Kandari, Bahuguna, 2020)
↑ financial access, enabled higher income, purchasing power & expenditure. This led to ↑ in durable assets, clean floor, improved clean drinking water facilities & clean cooking fuel etc. (Salgotra, Kandari, Bahuguna, 2020)
(9b/16) MUDRA and Health
Increase in access to finance facilitated increased consumption expenditure on healthcare along with slight improvement in the nutrition level (Salgotra, Kandari, Bahuguna, 2020)
Increase in access to finance facilitated increased consumption expenditure on healthcare along with slight improvement in the nutrition level (Salgotra, Kandari, Bahuguna, 2020)
(9c/16) MUDRA and education
Increase in access to finance enhanced expenditure on education alongside improvement in student’s attendance in the schools and universities (Salgotra, Kandari, Bahuguna, 2020).
Increase in access to finance enhanced expenditure on education alongside improvement in student’s attendance in the schools and universities (Salgotra, Kandari, Bahuguna, 2020).
(10/16) MUDRA & women empowerment:
In Delhi-NCR region, 40% of women MUDRA beneficiaries invested borrowed money to set up new businesses or expand existing ones like running play school, tiffin services etc. (Pushpender, 2021)
researchgate.net
In Delhi-NCR region, 40% of women MUDRA beneficiaries invested borrowed money to set up new businesses or expand existing ones like running play school, tiffin services etc. (Pushpender, 2021)
researchgate.net
(10a/16) 42% of these women said MUDRA loans led them to set up their business & improved borrowing capacity of women entrepreneurs. More than 75% of respondents are interested in taking another loan after repaying existing loan (Pushpender, 2021)
(10b/16) Half of respondents said that they oversee their business & enjoy autonomy in taking decisions. These women participate in deciding their family size rather than being forced to have children, enjoy full discretion in voting (Pushpender, 2021).
(11a/16) She secured a MUDRA loan of Rs. 50,000 clubbed with her personal savings and put the basic infrastructure in place. Today her venture has grown manifold with 100 students and another branch in Dwarka, New Delhi. Today she employs total 33 people.
(12/16) MUDRA & Tribal women:
Study on tribal women entrepreneurs in WB shows volume of credit significantly influences employability. MUDRA has created employment prospects & improved livelihoods (Sahu, Agarwala, Maity, 2021) tandfonline.com.
Study on tribal women entrepreneurs in WB shows volume of credit significantly influences employability. MUDRA has created employment prospects & improved livelihoods (Sahu, Agarwala, Maity, 2021) tandfonline.com.
(14/16) Prior to MUDRA there were 25.9 million self-employed people which increased to 31 million post MUDRA. Post MUDRA, number of hired employees increased from 13.4 million to 19.5 million (Sonika Gupta and Dainik Sanghvi, 2020)
(15/16) Employment multiplier for all MUDRA loans is >1, the minimum employment created per loan. 37% of all entrepreneurs in Delhi who availed MUDRA loans created new jobs. 24% of respondents created indirect jobs of up to 2 persons each.
(16/16) GDP and MUDRA loans:
Positive correlation (not necessarily causation) observed b/w amount sanctioned under Shishu loan scheme & GDP in North East & South (Vevek, S. Sivaprakkash, R. Gopinath, 2019) researchgate.net End of🧵
Positive correlation (not necessarily causation) observed b/w amount sanctioned under Shishu loan scheme & GDP in North East & South (Vevek, S. Sivaprakkash, R. Gopinath, 2019) researchgate.net End of🧵
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