New Delhi:
Banks and financial institutions have sanctioned Rs 23.2 lakh crore to over 40.82 crore beneficiaries under the Mudra scheme launched eight years ago.
Pradhan Mantri Mudra Yojana (PMMY) launched by Prime Minister Narendra Modi on April 8, 2015 to facilitate easy collateral-free micro-credit of up to Rs 10 lakh to non-corporate, non-agriculture small and micro-entrepreneurs with income was done. Productive activities.
Loans under PMMY are provided by member lending institutions (MLIs) – banks, non-banking financial companies (NBFCs), microfinance institutions (MFIs) and other financial intermediaries, the finance ministry said in a statement on Saturday.
Speaking on the occasion of the 8th anniversary, Finance Minister Nirmala Sitharaman said, “Since the launch of the scheme, around Rs 23.2 lakh crore has been sanctioned in 40.82 crore loan accounts till March 24, 2023”.
About 68 per cent accounts under the scheme belong to women entrepreneurs, and 51 per cent accounts belong to SC/ST and OBC categories of entrepreneurs. He said that this shows that the easy availability of credit to the budding entrepreneurs of the country has led to continuous growth in innovation and per capita income.
Highlighting the indigenous development through MSMEs, the Finance Minister said, “The development of MSMEs has contributed to the ‘Make in India’ program in a big way, as strong domestic MSMEs can generate indigenous production for domestic markets as well as for exports.” The PMMY scheme has helped in generating massive employment opportunities at the grassroots level, and has proved to be a game changer as well as a boost to the Indian economy.
Minister of State for Finance Bhagwat K Karad said that the objective of the PMMY scheme is to provide collateral-free access to credit to micro enterprises in the country.
“It has brought the unserved and under-served sections of the society within the framework of institutional credit. Government’s policy of promoting MUDRA has led lakhs of MSME enterprises into the formal economy and helped them out from the clutches of money Lenders offered very high cost of funds,” he said.
The implementation of the Financial Inclusion (FI) program in the country is based on three pillars – Banking the Unbanked, Securing the Unsecured and Funding the Unfunded.
The scheme was launched to encourage small businesses, and banks will be given 10 lakh loans under three categories – Shishu (up to Rs 50,000), Kishor (between Rs 50,000 and Rs 5 lakh) and Tarun (up to Rs 10 lakh). Was asked to provide collateral-free loans up to Rs. 10 lakh rupees).
Shishu has 83 percent of the total loan, Kishor has 15 percent and Tarun has the remaining 2 percent.
The targets have been achieved since the inception of the scheme during 2020-21 due to the COVID-19 pandemic, the statement said.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)