Since its inception, 53.85 crore loans amounting to over Rs 35.13 lakh crore have been sanctioned under the Pradhan Mantri MUDRA Yojana (PMMY), the Parliament was informed on Monday.

The PMMY provides collateral-free credit of up to Rs 20 lakh to micro and small enterprises, thereby enabling self-employment and income generation.

Moreover, the launch of the Pradhan Mantri Jan Dhan Yojana (PMJDY) in August 2014 has marked a significant step in banking the unbanked by facilitating the opening of basic savings bank deposit accounts, with associated features such as RuPay debit cards and an in-built overdraft facility.

As on date, over 55.90 crore accounts have been opened under PMJDY, Minister of State for Finance, Pankaj Chaudhary, said in a written reply to a question in Lok Sabha.

The government has taken many initiatives to deepen financial inclusion and ensure that access to basic banking services leads to meaningful participation in the formal financial system, including access to credit.

Dedicated schemes such as Stand-Up India (SUPI), PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi), PM Vishwakarma, and the Prime Minister’s Employment Generation Programme (PMEGP) have been implemented to expand credit access for SC/ST and women entrepreneurs, street vendors, artisans, and other micro-enterprises, said the minister.

To strengthen credit assessment frameworks for individuals lacking conventional credit history, the government is leveraging technology and alternative data sources.

A Grameen Credit Score has been announced to support credit appraisal of Self-Help Group (SHG) borrowers and rural populations, including farmers and marginalised communities. This initiative is expected to enhance the quality and objectivity of credit decisions and facilitate improved access to formal credit in rural areas.

The MSME New Digital Credit Assessment Framework by Public Sector Banks makes use of integrated data from Income Tax returns, GST filings, and utility payments to enable faster and more precise credit evaluation, said Chaudhary.

The Jan Samarth Portal, a unified digital platform, has been launched to connect credit seekers with eligible Government schemes, thereby enhancing transparency, reducing processing time, and improving outreach.

Further, the Reserve Bank of India (RBI) mandates Priority Sector Lending (PSL) targets to ensure that credit flows to sectors such as agriculture, micro and small enterprises, weaker sections, and other underserved areas of the economy.