IndusInd Bank, Bandhan among major lenders in MUDRA Yojana

The latest MUDRA Yojana data for financial year 2021-22 (FY22) showed IndusInd Bank and Bandhan Bank as the top two lenders, ahead of the country’s largest public sector lender, State Bank of India (SBI), and India’s largest private sector bank, HDFC Bank, among others.

Pradhan Mantri MUDRA Yojana (PMMY) or MUDRA Yojana was launched on April 8, 2015 to facilitate easy collateral-free micro-credit of up to ₹10 lakh to non-corporate, non-farm small and micro-entrepreneurs for income-generating activities.

Loans under PMMY are provided by Member Lending Institutions (MLIs) banks, non-banking financial companies (NBFCs), microfinance institutions (MFIs), and other financial intermediaries. These loans are divided into three categories based on their ticket size.

For FY22, the total loan amount disbursed, which includes loans by PSBs, private sector banks, NBFCs, MFIs, small finance banks (SFBs), NBFC-micro institutions, regional rural banks (RRBs) and state co-operative banks was ₹3.31 lakh crore.

Of this, IndusInd Bank’s total loan disbursement amount under the scheme totalled ₹41,944 crore, the highest among all banks. This was followed by Bandhan Bank at 41,338 crore.