Over 37,000 PM Mudra Loan Borrowers Turn Defaulters In Ghaziabad As NPAs Surge To Rs 205 Crore

Ghaziabad: A significant number of loans disbursed under the Pradhan Mantri Mudra Yojana in Ghaziabad have slipped into the category of Non-Performing Assets (NPAs).

According to bank officials, beneficiaries are failing to pay loan installments on time, and a large number of account holders have made no effort to repay their loans for an extended period. Consequently, thousands of accounts have been declared NPAs.

Data have revealed that various banks in Ghaziabad have sanctioned a total of 119,954 loans under the Mudra Yojana so far, amounting to approximately Rs 1,264 crore.

The Mudra loan scheme aims to provide financial assistance to small traders, the self-employed, and micro-enterprises. While thousands of people have started or expanded their businesses through this scheme, a large number of loan accounts have now reached the stage of default.

Lead Bank Manager Budh Ram stated that 37,688 bank accounts in the district have been declared NPAs, with outstanding loan amounts totaling around Rs 205 crore. Being declared an NPA implies that the bank has not received any payment on the loan account for a specified period, and the likelihood of recovery is steadily diminishing.

Lead Bank Manager Budh Ram (ETV Bharat)

Account holders also suffer significant consequences when their loan accounts are classified as NPAs; an account remaining an NPA for a prolonged period damages the individual's CIBIL(Credit Information Bureau India Limited) score. A poor credit history can make it difficult to secure loans from banks or other financial institutions in the future and hampers prospects for obtaining vehicle loans, home loans, or financial aid for business expansion.

Bank management has urged loan account holders to pay their installments on time and settle outstanding dues. Officials emphasize that timely repayment not only preserves the account holders' financial records but also strengthens the banking system.

Loans under the Pradhan Mantri Mudra Yojana are provided across four categories:

1. Loans up to Rs 50,000 are provided under the 'Shishu' category.
2. Loans ranging from Rs 50,001 to Rs 5 lakh are provided under the 'Kishor' category.
3. Loans ranging from Rs 5,001 to Rs 10 lakh are provided under the 'Tarun' category.
4. Loans ranging from Rs 10 lakh to Rs 20 lakh are provided under the 'Tarun Plus' category.

Read More:

1. PM Mudra Yojana Has Redefined Access To Credit By Empowering Millions: Modi
2. Ramping Up Domestic LPG Production, Rs 39.48 Lakh Cr Sanctioned So Far Under PM-MUDRA: Finance Minister Nirmala Sitharaman