Mudra loans amounting to Rs 17,651 crore turned into NPAs since inception of scheme

New Delhi: The government on Tuesday said that loans amounting to Rs 17,651 crore, approximately 2 percent of the total Mudra loans have turned into Non Performing Assets (NPAs).

Responding to the question posed by Samajwadi Party (SP) Rajya Sabha Member of Parliament Ravi Prakash Verma, MoS Ministry of Finance said, out of Pradhan Mantri Mudra Yojana (PMMY) loans amounting to over Rs 8,93,000 crore were sanctioned by Member Lending Institutions (MLIs) upto March 31.

Loans amounting to approximately 2 percent, i.e. Rs 17,651.74 crore (provisional) have turned into NPAs, since inception of the scheme.

The Ministry said that reasons for NPAs for loans extended under PMMY are, inter-alia, first time borrowers under Shishu category prioritising emergent needs, business failures, inefficiencies in lending practices, poor credit appraisal, wilful default by borrowers, impaired cash flows of the units due to slowdown in business etc.