Banks sanctioned a little over the targeted Rs 1.80 lakh crore under the Pradhan Mantri Mudra Yojana (PMMY) in 2016-17 notwithstanding the impact of demonetisation on banking services for at least two months.
Loans extended under the Mudra scheme surpassed the target of Rs 1.80 lakh crore, a finance Ministry statement said.
According to estimates, loans totalling Rs 1,80,087 crore were sanctioned under the scheme.
Of the total loans sanctioned, Rs 1.23 lakh crore was provided by banks, while Rs 57,000 crore was given by non- banking institutions.
The demonetisation of Rs 500 and Rs 1,000 notes in November 2016 impacted banking operations throughout the country, but it did not have any bearing on the operation of the PMMY scheme.
The PMMY data indicate that loans were provided to about four crore borrowers of which over 70 per cent were women.
The statement further said that about 20 per cent of the borrowers were from the Scheduled Caste category, 5 per cent from the Scheduled Tribe category, while Other Backward Classes accounted for almost 35 per cent of the borrowers.
"The robust growth in bank loans to unfunded and underfunded segments is an indication of the emergence of this category of borrowers as a key driver of demand for credit," it added.
The Union Budget has announced a lending target of Rs 2.44 lakh crore under Mudra scheme for 2017-18.
Mudra Loans are made available for non-agricultural activities up to Rs 10 lakh. These also include activities like dairy, poultry, bee keeping etc, are also covered.
Under the scheme a borrower can access working capital through ATMs and card machines, the statement said, adding "evaluation studies show that banks have been proactive in identifying and disbursing loans to first time borrowers thereby weaning them away from money lenders".
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