**Executive Summary:**
This document is the Ministry of Finance's response to questions raised in Lok Sabha regarding the Pradhan Mantri Mudra Yojana (PMMY) in Tamil Nadu. It provides data on loan sanctions, scheme effectiveness, accessibility, application processes, contribution to microenterprises, and default rates as of June 2025. The response outlines steps taken to implement the scheme effectively and mitigate risks associated with loan defaults.
**Key Points / Main Content:**
* **Loan Sanctions in Tamil Nadu:**
* As of June 2025, over 5.96 crore loan accounts have been sanctioned in Tamil Nadu since the scheme's inception.
* Parliamentary constituency-wise data is not maintained.
* **Scheme Effectiveness:**
* No specific study has been conducted in Tamil Nadu to gauge the scheme's effectiveness in promoting entrepreneurship and generating employment.
* **Accessibility and Awareness:**
* The government has undertaken publicity campaigns and simplified the application form.
* A Credit Guarantee Scheme and Mudra Nodal Officer have been put in place.
* The Jan Samarth portal links twelve government-sponsored loan and subsidy schemes, including PMMY.
* Banks and financial institutions have developed online platforms and mobile apps for digital loan processing.
* **Loan Distribution and Performance:**
* Sector-category-specific loan details are not maintained centrally.
* As of June 2025, over 53.85 crore loans, amounting to Rs. 35.13 lakh crore, have been sanctioned since the scheme's launch.
* 67% of loans have been sanctioned to Women Entrepreneurs, and 50% to SC/ST/OBC borrowers.
* State-wise NPA details are not maintained centrally.
* **Mitigation of Loan Defaults:**
* Banks are taking steps to recover NPAs, including constant follow-up with customers.
* Restructuring of eligible accounts and One Time Settlement (OTS) options are available.
**Impact Analysis**
* **Borrowers (Individuals and Businesses):**
* *Impact:* Access to loans under PMMY for starting or expanding micro and small enterprises.
* *Action Required:* Utilize the Jan Samarth portal or bank online platforms to apply for loans. Engage with banks for restructuring or OTS in case of repayment difficulties.
* **Government (Ministry of Finance, Department of Financial Services):**
* *Impact:* Responsible for the effective implementation and monitoring of the PMMY scheme.
* *Action Required:* Continue publicity campaigns, simplify application processes, monitor loan performance, and take steps to improve recovery of NPAs.
* **Banks and Financial Institutions:**
* *Impact:* Involved in the sanctioning and disbursal of loans under PMMY.
* *Action Required:* Develop and maintain online platforms for loan processing, implement customer follow-up, and offer restructuring or OTS options to manage NPAs.
Key Entities Referenced
Pradhan Mantri Mudra Yojana PMMY: A government scheme aimed at providing financial assistance to micro and small enterprises.
Tamil Nadu: A state in southern India, specifically mentioned in the context of PMMY loan sanctions and scheme effectiveness.
Arani Lok Sabha Constituency: A parliamentary constituency in Tamil Nadu, used as a specific area of interest regarding PMMY loan distribution.
MUDRA: An abbreviation for Micro Units Development and Refinance Agency, associated with the PMMY scheme.
SHRI PANKAJ CHAUDHARY: Minister of State in the Ministry of Finance, responsible for answering the questions related to PMMY.
Jan Samarth portal: A one-stop digital platform for linking government-sponsored loans and subsidies, including PMMY schemes.
SCSTOBC: Refers to Scheduled Castes, Scheduled Tribes, and Other Backward Classes, a category of borrowers under the PMMY scheme.
One Time Settlement OTS: A mechanism used by banks for recovery of Non-Performing Assets (NPA) under PMMY by offering a one-time settlement option to borrowers.
Government of India
Ministry of Finance
Department of Financial services
LOK SABHA
UNSTARRED QUESTION NO. 1154
ANSWERED ON MONDAY, JULY 28, 2025/SRAVANA 6, 1947 (SAKA)
LOANS SANCTIONED UNDER PMMY IN TAMIL NADU
1154. Shri Tharaniventhan M S:
Will the Minister of FINANCE be pleased to state:
(a): the current status of the Pradhan Mantri Mudra Yojana (PMMY) and the number of loans
sanctioned under the scheme since its inception in Tamil Nadu, especially in Arani Lok Sabha
Constituency along with the details of total number of individuals and businesses have benefitted
from the scheme;
(b): whether the Government has evaluated or conducted any study to gauge the effectiveness of the
MUDRA scheme in promoting entrepreneurship and generating employment opportunities,
specifically in Tamil Nadu;
(c): whether the Government ensures that the benefits of the MUDRA scheme reach micro and small
enterprises, particularly in rural and underserved areas and if so, the steps taken by the Government
to ensure the accessibility and awareness of the MUDRA scheme among the marginalized
communities and economically backward sections of Tamil Nadu;
(d): the steps taken/being taken by the Government to simplify the application process for MUDRA
loans and if so, the details of the sector-wise distribution of loans, especially for sectors such as
agriculture, manufacturing and services;
(e): whether the MUDRA scheme contributed to the growth and sustainability of microenterprises
and if so, the future targets for this initiative; and
(f): the data on the default rate of MUDRA loans in Tamil Nadu and the steps taken to mitigate the
risks associated with loan defaults?ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) to (d): As on June, 2025, more than 5.96 crore loan accounts have been sanctioned under Pradhan
Mantri Mudra Yojana (PMMY), since inception in the state of Tamil Nadu. Parliamentary
Constituency-wise data is not maintained for loans sanctioned under the Scheme.
No specific study has been carried out to gauge the effectiveness of the MUDRA scheme in promoting
entrepreneurship and generating employment opportunities, relating to Tamil Nadu.
Government has taken various steps towards the effective implementation of the Mudra Scheme.
These, inter-alia, include publicity campaigns, simplification of application form, Credit Guarantee
Scheme, nomination of Mudra Nodal Officer, frequent reviews at various level by Government and
banks.
The Jan Samarth portal is a one-stop digital platform for linking twelve Government-sponsored loans
and subsidies, including PMMY Schemes. The portal provides a quick and efficient way to apply for
loans and provide approvals based on a digital evaluation of the applicant's data. Further, many banks
and financial institutions have developed online platforms and mobile apps for end to end digital
processing of loan applications, reducing the need for physical paperwork and in-person visits.
Sector / category specific details is not being maintained centrally under PMMY.
(e) and (f): As on June, 2025 more than 53.85 crore loans amounting to Rs.35.13 lakh crore have
been sanctioned since the launch of Scheme, out of which, 67% loans have been sanctioned to Women
Entrepreneurs & 50% loans have been sanctioned to SC/ST/OBC category of borrowers
Details of State-wise NPA is not maintained centrally. The steps taken by banks for recovery of NPA
under PMMY include:
(i) constant follow up and increased frequency of customer connect;
(ii) restructuring of eligible accounts and One Time Settlement (OTS).
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