Tamil Nadu has emerged as the state with the highest number of Mudra loan accounts and disbursements under the Pradhan Mantri Mudra Yojana (PMMY) scheme, according to data uploaded by Member Lending Institutions (MLIs) on the Mudra Portal. The state boasts an impressive 5.62 crore loan accounts, with loans amounting to Rs 3.06 lakh crore sanctioned, and Rs 3.03 lakh crore disbursed to small entrepreneurs across the region.The PMMY scheme, launched in April 2015 by Prime Minister Narendra Modi, aims to provide collateral-free microcredit up to Rs 10 lakh to non-corporate, non-farm micro, and small entrepreneurs for income-generating activities. Nationally, over 49 crore loan accounts amounting to more than Rs 30 lakh crore have been sanctioned since the scheme’s inception.
However, the latest data has sparked political discourse in the state. Tamil Nadu Congress Committee (TNCC) president K Selvaperunthagai has demanded a white paper from the Union government, seeking transparency on the number of Mudra loans disbursed in Tamil Nadu during the 2023-24 financial year.
The TNCC chief’s demand comes in the wake of Union Finance Minister Nirmala Sitharaman’s recent comments at a conference in Coimbatore. During the event, the minister claimed that Rs 3 lakh crore had been disbursed to 5.6 crore Mudra account holders in Tamil Nadu, including 20 lakh account holders in Coimbatore alone, who reportedly received Rs 13,180 crore in loans.
Selvaperunthagai questioned these figures, stating that many of the MSME entrepreneurs who attended the conference were left stunned by the scale of the disbursements being claimed. “The reality faced by entrepreneurs on the ground seems far removed from the figures provided by the Union Finance Minister. The people of Tamil Nadu deserve clarity and a detailed account of these disbursements,” he remarked.
The TNCC president’s call for a white paper reflects growing concerns among opposition parties about the actual implementation of the Mudra loan scheme in the state. While the PMMY data highlights impressive numbers, questions linger over the distribution and impact of the loans on the intended beneficiaries. Selvaperunthagai urged the Union government to provide detailed reports and ensure that the funds are genuinely benefiting the state’s micro-entrepreneurs.