File photograph of former Union Minister and senior Congress Party chief P. Chidambaram. In a tweet, Mr. Chidambaram stated under the Mudra Loan scheme, loans of the worth of ₹23.2 lakh crore have been given in eight years.
| Photo Credit: SHIV KUMAR PUSHPAKAR
As the Pradhan Mantri MUDRA Yojana accomplished eight years, senior Congress chief P. Chidambaram on April 9 stated 83% of the loans given under the scheme are under ₹50,000 which leaves him questioning what kind of business can be done in the present day with a mortgage of that quantity.
Banks and monetary establishments have sanctioned ₹23.2 lakh crore to over 40.82 crore beneficiaries under the Mudra Yojana launched to fund the unfunded eight years in the past.
Pradhan Mantri MUDRA Yojana (PMMY) was launched on April 8, 2015, by Prime Minister Narendra Modi to facilitate simple collateral-free micro-credit of as much as ₹10 lakh to non-corporate, non-farm small and micro-entrepreneurs for income-generating actions.
In a tweet, Mr. Chidmabaram stated that under the Mudra Loan scheme, loans of the worth of ₹23.2 lakh crore have been given in eight years which is “impressive” till you discover that 83% of these loans are under ₹50,000.
“That is ₹19,25,600 crore of loans have been given to borrowers at the rate of ₹Rs 50,000 or less. It leaves me wondering what kind of business can be done today with a loan of ₹50,000?” the previous Finance Minister stated.
Loans under PMMY are offered by Member Lending Institutions (MLIs) — banks, non-banking monetary firms (NBFCs), microfinance establishments (MFIs) and different monetary intermediaries, the Finance Ministry stated in an announcement on Saturday.
