NPA against outstanding amount rises to 9.81% till March 2025

PMMY scheme caters to those segments which have been outside formal credit system due to a lack of collateral, business experience

- OUR CORRESPONDENT

NEW DELHI: The Non-performing Asset (NPA) rate against outstanding amount under Pradhan Mantri Mudra Yojana (PMMY) for Scheduled Commercial Banks (SCBs) has risen from 5.47 per cent at the end of March 2018 to 9.81 per cent till March 2025, Parliament was informed on Tuesday.

The NPA rate against the amount of loan disbursed under Pradhan Mantri Mudra Yojana (PMMY) for SCBs, as on March 2025, is 2.19 per cent as compared to 2.71 per cent at the end of March 2018, Finance Minister Nirmala Sitharaman said in a written reply in the Rajya Sabha.

PMMY scheme mainly caters to those segments of society which have been outside the formal credit system because of a lack of collateral, business experience, etc, she said.

The NPA rate under PMMY is higher than the average MSME NPA rate because the loans under the scheme are collateral-free and are often provided to new business entrepreneurs who may lack business experience and expertise, she said. As regards NPA for MSMEs, she said, it was 3.60 per cent against the outstanding amount as of March 2025.