Banks sanctioned Rs 23.2 lakh crore to around 41 crore beneficiaries under Mudra Yojana: Govt

New Delhi: Debt of more than 40.82 crores 23.2 trillion has been sanctioned since the inception of the Pradhan Mantri Mudra Yojana (PMMY) eight years ago, the finance ministry said.

Pradhan Mantri Mudra Yojana (PMMY) was launched by Prime Minister Narendra Modi on 8 April 2015 to facilitate easy collateral-free micro-credit. 10 lakh to non-corporate, non-agriculture small and micro-entrepreneurs for income-generating activities.

Speaking on the occasion, Finance Minister Nirmala Sitharaman said, “Since the launch of the scheme, till March 24, 2023, approx. Rs 23.2 lakh crore has been sanctioned in 40.82 crore loan accounts.

“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. This shows that the easy availability of credit to the country’s budding entrepreneurs has fueled innovation and sustained growth in 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 are involved in indigenous production for domestic markets as well as for exports. The PMMY scheme helped in generating massive employment opportunities at the grassroots level and proved to be a game changer along with boosting the Indian economy.”

Minister of State for Finance Bhagwat K. Karad said the PMMY scheme aims to provide collateral-free access to credit to micro-enterprises in the country in a seamless manner.

“It has brought the unserved and under-served sections of the society within the framework of institutional credit. The government’s policy of promoting MUDRA has propelled lakhs of MSME enterprises into the formal economy and helped them get out of the clutches of moneylenders offering very high cost 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 were asked to provide collateral-free loans 10 lakh under three categories – Infant ( 50,000), teens (between 50,000 more 5 lakh) and Tarun ( 10 lakh).

“In total, Shishu accounts for 83% of the total loan while Kishor accounts for 15% and Tarun the remaining 2%. The targets have been achieved since the inception of the scheme during 2020-21 due to the COVID-19 pandemic,” the ministry said.

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