45% jump in FY22 credit to women-led MSMEs from pre-Covid level by public sector banks: RBI data | The Financial Express*

Clipped from: https://www.financialexpress.com/industry/sme/msme-tech-45-jump-in-fy22-credit-to-women-led-msmes-from-pre-covid-level-by-public-sector-banks-rbi-data/2911991/

Credit and finance for MSMEs: The amount increased from Rs 5.76 lakh crore in FY20 to Rs 7.31 lakh crore in FY21 and further to Rs 8.36 lakh crore in FY22. The number of loans disbursed to women MSMEs also jumped 22.6 per cent to 3.05 crore in FY22 from 2.49 crore in FY20 and 5.5 per cent from 2.89 crore in FY21.

45% jump in FY22 credit to women-led MSMEs from pre-Covid level by public sector banks: RBI dataGrowth in credit to women-led MSME units is part of the overall credit growth in the MSME sector.

Credit and finance for MSMEs: Credit extended by public sector banks (PSBs) to women-led MSMEs during the financial year 2021-22 has jumped 45 per cent from the pre-Covid level (FY20) and 14.2 per cent from FY21, according to the data from the Reserve Bank of India (RBI) shared by the minister of state in the finance ministry Bhagwat Karad in a written reply to a question in the Rajya Sabha on Tuesday. The amount increased from Rs 5.76 lakh crore in FY20 to Rs 7.31 lakh crore in FY21 and further to Rs 8.36 lakh crore in FY22. The number of loans disbursed to women MSMEs also jumped 22.6 per cent to 3.05 crore in FY22 from 2.49 crore in FY20 and 5.5 per cent from 2.89 crore in FY21. 

Growth in credit to women-led MSME units is part of the overall credit growth in the MSME sector. The total amount of credit extended to MSMEs in FY22 increased by 24.6 per cent from FY20 and 12.7 per cent from FY21, indicating the rise in credit demand among small businesses fast-tracking their Covid recovery.

Also read: NITI Aayog launches revamped Women Entrepreneurship Portal to onboard 2.5 lakh women entrepreneurs

According to the data from the Reserve Bank of India (RBI) shared by the MSME Minister Narayan Rane in the Rajya Sabha on Monday in a written reply to a question, the credit outstanding to the MSME sector increased from Rs 16.13 lakh crore given to 384.18 lakh borrowers to Rs 17.83 lakh crore to 420.19 lakh borrowers in FY21 and further to Rs 20.11 lakh crore to 264.67 lakh borrowers in FY22. 

Women MSMEs had a share of 20.31 per cent in the enterprises registered on the Udyam portal as of December 12, 2022, in the current fiscal. Out of 44.38 lakh MSMEs registered on the portal, 9.01 lakh were owned by women, according to the data shared by the minister of state for MSME Bhanu Pratap Singh Verma in the Rajya Sabha on Monday. On the other hand, the share of women MSMEs in FY22 stood at 17.67 per cent with 9.10 lakh women units out of the total 51.55 lakh MSMEs registered on the Udyam portal during FY22. 

Also read: Women entrepreneurs and access to finance: why credit stays small

Overall, out of 1.24 crore Udyam units registered so far since the launch of the portal on July 1, 2020, 23.01 lakh were led by women entrepreneurs with an 18.49 per cent share.

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