Implementation of the monetary inclusion (FI) programme within the nation relies on three pillars – Banking the Unbanked, Securing the Unsecured and Funding the Unfunded. (Representative picture)
Loans underneath PMMY are supplied by banks, non-banking monetary corporations (NBFCs), microfinance establishments (MFIs) and different monetary intermediaries.
Banks and monetary establishments have sanctioned Rs 23.2 lakh crore to over 40.82 crore beneficiaries underneath 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 Rs 10 lakh to non-corporate, non-farm small and micro-entrepreneurs for income-generating actions.
Loans underneath PMMY are supplied by Member Lending Institutions (MLIs) — banks, non-banking monetary corporations (NBFCs), microfinance establishments (MFIs) and different monetary intermediaries, the finance ministry mentioned in an announcement on Saturday.
Speaking on the event of the eighth anniversary, Finance Minister Nirmala Sitharaman mentioned, “Since the launch of the scheme, as of March 24, 2023, about Rs 23.2 lakh crore has been sanctioned in 40.82 crore loan accounts”.
“The scheme has enabled easy and hassle-free access to credit to micro-enterprises and has helped a large number of young entrepreneurs establish their businesses,” Sitharaman added.
Highlighting indigenous growth through MSMEs, the finance minister said, “The growth of MSMEs has contributed massively to the “Make in India” programme as robust home MSMEs result in elevated indigenous manufacturing each for home markets in addition to for exports. The PMMY scheme has helped within the technology of large-scale employment alternatives on the grassroots stage and likewise has proved to be a sport changer whereas boosting the Indian financial system.”
About 68% of accounts under the scheme belong to women entrepreneurs, and 51% of accounts belong to entrepreneurs of SC/ST and OBC categories. This demonstrates that easy availability of credit to the budding entrepreneurs of the country has led to innovation and sustained increase in per capita income, she added.
Minister of State for Finance Bhagwat K Karad said the PMMY scheme aims to provide collateral-free access to credit in a seamless manner to micro-enterprises in the country.
“It has brought the unserved and under-served sections of the society within the framework of institutional credit. The government policy of promoting MUDRA has led millions of MSME enterprises in the formal economy and has helped them to get out of the clutches of money-lenders offering very high-cost funds,” he added.
Implementation of the financial inclusion (FI) programme 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 were asked to provide collateral-free loans up to Rs 10 lakh under three categories — Shishu (up to Rs 50,000), Kishore (between Rs 50,000 and Rs 5 lakh) and Tarun ( Rs 10 lakh).
Of the total, Shishu accounts for 83% of the total loans while Kishore 15% and the remaining 2% Tarun.
Targets have been achieved since the inception of the scheme barring during 2020-21 due to the Covid-19 pandemic, the statement said.
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