**Executive Summary:**
This document presents the Finance Minister's response to Lok Sabha Starred Question No. 14 regarding credit access for Scheduled Caste (SC) beneficiaries in Uttar Pradesh under the MUDRA, PMEGP, and StandUp India schemes since 2021. It includes data on loan disbursement, district-wise share of SC beneficiaries, reasons for loan rejection, and directives related to SC loan disbursal quotas. The answer was provided on July 21, 2025.
**Key Points / Main Content:**
* **Loan Disbursement to SC Beneficiaries (since 2021):**
* PMMY: 69,93,069 accounts
* PMEGP: 5,653 accounts
* StandUp India: 1,793 accounts
* **District-wise Share of SC Beneficiaries:**
* Details are provided in Annexure I, showing the percentage of SC beneficiaries in each district of Uttar Pradesh, ranging from 1.85% to 33.46%.
* **Loan Application Rejections:**
* Centralized data on rejected loan applications is not maintained.
* Major reasons for rejection include:
* Non-viability of the project
* Inconsistencies during the pre-sanction stage (e.g., KYC non-compliance, incorrect address)
* Unsatisfactory credit history (e.g., poor CIBIL score, NPA account)
* Non-availability of necessary registration approvals
* **Directives for SC Loan Disbursal:**
* RBI mandates an overall priority sector lending (PSL) target of 40% of Adjusted Net Bank Credit (ANBC) or Credit Equivalent of Off-Balance Sheet Exposures (CEOBE), whichever is higher.
* Within the 40% PSL target, a 12% sub-target is mandated for lending to weaker sections, including SCs, STs, and Minority Communities.
* Shortfalls in meeting these targets are addressed through contributions to funds like RIDF with NABARD, NHB, SIDBI, and Mudra Ltd.
**Impact Analysis:**
* **Scheduled Caste (SC) Individuals in Uttar Pradesh:**
* *Impact:* Provides information on access to credit under various government schemes and identifies districts where access may be limited.
* *Action Required:* Utilize the information to understand credit access in their district and address any application deficiencies based on common rejection reasons.
* **Banks (Public and Private):**
* *Impact:* Highlights the need to meet priority sector lending targets, including the sub-target for lending to weaker sections like SCs. Failure to meet targets results in contributions to designated funds.
* *Action Required:* Review lending practices to ensure compliance with PSL targets and sub-targets for SC beneficiaries. Address common reasons for loan application rejections and improve outreach in districts with low SC beneficiary shares.
* **Reserve Bank of India (RBI):**
* *Impact:* The policy reaffirms RBI's role in setting priority sector lending targets and managing funds to address shortfalls.
* *Action Required:* Continue monitoring banks' compliance with PSL targets, including the sub-target for weaker sections, and allocate funds to support critical sectors.
* **NABARD, NHB, SIDBI, Mudra Ltd:**
* *Impact:* These institutions receive funds from banks that fail to meet PSL targets, enabling them to support key sectors for economic growth and social development.
* *Action Required:* Utilize the funds to support initiatives that promote economic growth and social development, particularly in sectors that benefit SC communities.
Key Entities Referenced
Uttar Pradesh: A state in India, focus of the credit access for Scheduled Caste beneficiaries.
Scheduled Caste: A group of historically disadvantaged people in India, also known as SC.
MUDRA: Refers to Pradhan Mantri Mudra Yojana (PMMY), a scheme for providing loans to micro and small enterprises.
PMEGP: Refers to Prime Minister's Employment Generation Programme, a credit-linked subsidy program for generating employment.
StandUp India: A scheme to promote entrepreneurship among women and Scheduled Castes and Scheduled Tribes.
Nirmala Sitharaman: The Finance Minister who answered the questions in the Lok Sabha.
Reserve Bank of India: RBI; The central bank of India, responsible for monetary policy and regulation of the banking system.
Priority Sector Lending: PSL; A scheme by Reserve Bank of India that mandates banks to allocate a certain portion of their lending to specific sectors.
14th POSITION
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES
LOK SABHA
STARRED QUESTION NO. *14
ANSWERED ON MONDAY, JULY 21, 2025/ 30 ASHADHA, 1947 (SAKA)
CREDIT ACCESS FOR SC BENEFICIARIES IN UTTAR PRADESH
*14. SHRI PUSHPENDRA SAROJ:
Will the Minister of FINANCE be pleased to state:
(a) the number of Scheduled Caste individuals in Uttar Pradesh who have availed loans under MUDRA,
PMEGP and Stand-Up India schemes since 2021;
(b) the district-wise share of SC beneficiaries in formal credit access in Uttar Pradesh;
(c) the number of SC loan applications rejected or returned by banks during the last three years in Uttar
Pradesh along with the reasons for rejection; and
(d) whether the Government has issued any directives to public and private banks for minimum SC loan
disbursal quotas in districts with large SC population, if so, the details thereof along with the action
taken against the banks that fail to meet the said quota?
ANSWER
THE FINANCE MINISTER
(Smt. Nirmala Sitharaman)
(a) to (d): A statement is laid on the Table of the HouseSTATEMENT REFERRED TO IN REPLY TO LOK SABHA STARRED QUESTION NO.*14
(14TH POSITION) FOR ANSWER ON 21.07.2025 BY SHRI PUSHPENDRA SAROJ ON
CREDIT ACCESS FOR SC BENEFICIARIES IN UTTAR PRADESH
a): The borrowers belonging to Scheduled Castes (SC) in Uttar Pradesh who have availed loans
(accounts disbursed) under Pradhan Mantri Mudra Yojana (PMMY), Prime Minister's Employment
Generation Programme (PMEGP) and the Stand-Up India Scheme since 2021 are as under:
PMMY PMEGP Stand Up India
69,93,069 5,653 1,793
(b): The district-wise share of SC beneficiaries in formal credit access in Uttar Pradesh is placed at
Annexure-I.
(c) to (d): The information regarding no. of rejected loan applications, is not being maintained centrally.
However, the major reasons for rejection of loan applications are:
• Non-viability of the project;
• Inconsistencies found in pre-sanction stage e.g. Non-compliance of KYC norms, borrower not
found at the mentioned address etc.;
• Unsatisfactory credit history of the borrower e.g., poor CIBIL score, NPA account etc.;
• Non-availability of necessary registration/ approvals, wherever required, related to the project
etc.;
As per RBI Master directions of Priority Sector Lending (PSL), an overall target of 40% of Adjusted
Net Bank Credit (ANBC)/ Credit Equivalent of Off Balance Sheet exposures (CEOBE) whichever is
higher has been prescribed for priority sector lending. Within this overall target of 40%, a sub target of
12% has been mandated for lending to weaker sections, which, inter- alia includes Schedule Castes
(SCs), Schedule Tribes (STs) and Minority Communities.
If these targets are not met, the shortfall is addressed through contributions to designated funds such as
Rural Infrastructure Development Fund (RIDF) and others funds with NABARD/NHB/SIDBI/Mudra
Ltd, as decided by RBI from time to time. These funds are primarily intended to support sectors critical
for the country’s economic growth and social development.
*****Annexure I for Part (b) of Lok Sabha Starred Question No. 14 for answer on 21.07.2025
% share of SC Category (No. of loan
Sr No Name of District
Accounts)
1 Agra 15.42%
2 Aligarh 6.97%
3 Ambedkar Nagar 7.14%
4 Amethi 18.97%
5 Amroha 2.32%
6 Auraiya 4.79%
7 Ayodhya 4.47%
8 Azamgarh 12.41%
9 Baghpat 3.74%
10 Bahraich 4.43%
11 Ballia 4.30%
12 Balrampur 2.01%
13 Banda 7.39%
14 Barabanki 8.72%
15 Bareilly 16.54%
16 Basti 5.99%
17 Bhadohi 10.49%
18 Bijnor 10.38%
19 Budaun 2.97%
20 Bulandshahr 7.32%
21 Chandauli 9.82%
22 Chitrakoot 13.57%
23 Deoria 5.96%
24 Etah 5.32%
25 Etawah 12.56%
26 Farrukhabad 4.63%
27 Fatehpur 5.02%
28 Firozabad 9.55%
29 Gautam Buddha Nagar 2.62%
30 Ghaziabad 1.85%
31 Ghazipur 11.98%
32 Gonda 2.12%
33 Gorakhpur 12.11%
34 Hamirpur 9.11%
35 Hapur 7.56%
36 Hardoi 8.99%
37 Hathras 10.34%
38 Jalaun 10.77%
39 Jaunpur 10.16%
40 Jhansi 7.25%
41 Kannauj 5.27%
42 Kanpur Dehat 6.06%
43 Kanpur Nagar 5.99%
44 Kasganj 6.03%
45 Kaushambi 10.36%
46 Kushi Nagar 4.41%
47 Lakhimpur Kheri 10.41%48 Lalitpur 6.27%
49 Lucknow 12.42%
50 Maharajganj 5.03%
51 Mahoba 12.03%
52 Mainpuri 4.41%
53 Mathura 5.03%
54 Mau 6.55%
55 Meerut 6.64%
56 Mirzapur 13.79%
57 Moradabad 33.46%
58 Muzaffarnagar 4.29%
59 Pilibhit 3.98%
60 Pratapgarh 6.50%
61 Prayagraj 7.67%
62 Rae Bareli 5.79%
63 Rampur 3.12%
64 Saharanpur 10.28%
65 Sambhal 2.37%
66 Sant Kabeer Nagar 19.94%
67 Shahjahanpur 5.83%
68 Shamli 3.05%
69 Shravasti 6.99%
70 Siddharth Nagar 3.67%
71 Sitapur 16.31%
72 Sonbhadra 13.94%
73 Sultanpur 5.73%
74 Unnao 8.08%
75 Varanasi 27.65%