MUDRA loan: Tamil Nadu Women top the list

According to the data provided by Ministry of Finance to Rajya Sabha, Tamil Nadu topped the list in availing loans to women. It was followed by West Bengal and Karnataka.


According to the data produced by the Ministry of Finance, around 15 crore loans amounting to Rs 4.78 lakh crores were disbursed to women borrowers since the inception of Pradhan Mantri Mudra Yojana.

As of March 31, 2020. Tamil Nadu had availed Rs 58,227 crores. The loans provided by other states are as follows

  • West Bengal: Rs 55,232 crores
  • Karnataka: Rs 47,714 crores
  • Bihar: Rs 44,879
  • Maharashtra: Rs 42,000 crores

All the above states have received 52% of MUDRA loans for women. The loans were availed to activities allied to agriculture, services, trading, processing, manufacturing, etc.

Of the total number of loans provided under MUDRA scheme, 70% borrowers were women.

Pradhan Mantri MUDRA Yojana

It was launched in 2015 to provide loans to non-corporate, small and micro enterprises. Under the scheme, loans up to Rs 10 lakhs are provided. The loans are given by Regional Rural Banks, Commercial banks, Small Finance Banks, Non-Banking Financial Corporations, Micro-Financial Institutions.


The Government of India under Atma Nirbhar Bharat Abhiyan provided 2% interest rate subvention for 12 months to prompt loan payees under MUDRA Scheme. Also, special loans up to Rs 10,000 were provided to street vendors to restart their businesses that were badly hit by COVID-19 lock down.


The Non-Performing Assets as a percentage of MUDRA loans has increased from 2.52% in 2017-18 to 2.68% in 2018-19.

Way Forward

  • Banks have to focus on capacity appraisal of the loans
  • The banks should monitor the loans through the life cycle much more closely
  • Financial Technologies have their own risks and challenges. These risks should be identified at the earliest
  • The micro finance institutions should broaden their client outreach.