BENGALURU: Karnataka has received approvals for more than Rs 2.08 lakh crore in loans and credit guarantees under various Union government self-employment and MSME support schemes, including the Pradhan Mantri Mudra Yojana (PMMY), Stand-Up India, and the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
However, official data tabled in Parliament shows that several districts, including Udupi, Chikkamagaluru, Chikkaballapur, Dakshina Kannada, Gadag, Kodagu, Uttara Kannada and Yadgiri, continue to lag in opening Mudra loan accounts and availing benefits.
The details were provided by Minister of State for Finance Pankaj Chaudhary in a written reply in the Lok Sabha on July 21 to an unstarred question raised by Dakshina Kannada MP Capt. Brijesh Chowta.
According to the reply, banks in Karnataka sanctioned Rs 1,42,979.71 crore under the Mudra scheme between April 1, 2023, and March 31, 2026, while Rs 1,42,470.51 crore was actually disbursed across more than 1.50 crore loan accounts.
The data also highlights a significant trend in banking performance. Private sector banks sanctioned loans worth nearly Rs 38,000 crore to around five lakh beneficiaries. In comparison, public sector banks disbursed around Rs 33,000 crore through more than 15.11 lakh loan accounts during the same period. For the current financial year up to June 2026, private banks have already disbursed over Rs 10,000 crore, compared to Rs 8,271 crore by public sector banks.
Among public lenders, Canara Bank, State Bank of India, Union Bank of India and Bank of Baroda together accounted for nearly Rs 7,000 crore in Mudra loans.
District-wise figures show Bengaluru Urban emerging as the biggest beneficiary with ₹18,143.30 crore in sanctioned Mudra loans. Belagavi followed with Rs 9,645.34 crore, while Mysuru received ₹8,286.19 crore.
At the other end of the spectrum, Udupi recorded one of the lowest performances, with only 1.55 lakh loan accounts and sanctions worth Rs 2,125.66 crore, of which Rs 2,114.14 crore was disbursed. Chikkaballapur received sanctions of Rs 2,329.22 crore, Chikkamagaluru Rs 3,155.52 crore, Dakshina Kannada Rs 3,021.84 crore, Gadag Rs 1,807.51 crore, and Uttara Kannada Rs 3,403.17 crore.
The Mudra scheme offers collateral-free loans under three categories: Shishu, Kishore and Tarun, to encourage entrepreneurship and small businesses.
Under the Stand-Up India Scheme, Karnataka received sanctions worth Rs 900.65 crore for 4,095 loan accounts during 2023-24 and 2024-25. Of this, Rs 591.24 crore was disbursed to 2,938 beneficiaries. Bengaluru Urban again led the State with sanctions of Rs 289.86 crore.
Sector-wise, loans under the Stand-Up India programme were distributed across manufacturing, services, trading and agriculture-related activities. The services sector accounted for the highest sanctioned amount at Rs 292.16 crore, followed by trading with Rs 291.63 crore, manufacturing with Rs 197.04 crore, and agriculture and allied sectors with Rs 119.81 crore.
The CGTMSE scheme, which provides credit guarantees for MSMEs, approved guarantees worth Rs 64,142 crore covering 4.72 lakh loans during the same period. Bengaluru Urban alone accounted for Rs 28,073 crore, reinforcing its position as the State’s leading MSME financing hub.
Unlike the Mudra scheme, public sector banks dominated lending under CGTMSE, sanctioning nearly Rs 32,000 crore, while private banks approved around Rs 13,000 crore. Regional Rural Banks extended loans to over 42,000 beneficiaries, amounting to Rs 1,298 crore.
The data also points to regional disparities. Chamarajanagar and Yadgiri remained the weakest-performing districts under CGTMSE, with only 3,463 and 3,607 beneficiaries, respectively. Vijayapura received the lowest sanctioned amount of around Rs 47 crore under the scheme.
The Union also provided social category-wise data. Under the Mudra scheme, 1.06 crore women entrepreneurs, 16.64 lakh Scheduled Caste beneficiaries, and 6.68 lakh Scheduled Tribe beneficiaries have received assistance. Under Stand-Up India, 2,732 women, 1,050 SC, and 313 ST entrepreneurs benefited, while CGTMSE supported 1.44 lakh women, 17,505 SC, and 6,333 ST beneficiaries.
The Union government informed Parliament that the implementation and progress of these schemes are being regularly reviewed through Block Level Bankers’ Committees (BLBCs), District Consultative Committees (DCCs), and the State Level Bankers’ Committee (SLBC) to improve credit delivery and ensure wider outreach across Karnataka.
