Plagued by disrupted cash flow cycles and a slow recovery postpandemic, micro entreprises, vendors, small traders and seasonal businesses were among the adversely hit over the past one year.

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As small businesses failed to recover post pandemic, their loan repayment capacities weakened, pushing bad loan burden underPradhan MantriMundra Yojana (PMMY) up.

While fresh disbursal of loans under Pradhan MantriMudra Yojana(PMMY) increased merely by 10% from Rs 1,920.29 crore in

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the April to June quarter of 2020-21 to Rs 2,089.22 crore in the corresponding quarter this year, NPAs swelled from Rs 555.54 crore to Rs 856.52 crore up 54.17%, during the same period.

According to experts, micro enterprises which typically avail Mudra Yojana were the worst affected due to the pandemic-inducedlockdown.