With the help of banks and PMMY MUDRA scheme launched in 2015. People who earlier used to struggle in getting loans can now easily opt one. Pradhan Mantri Mudra Yojna is said to have helped 58 million small business owners in our nation.
Through the scheme, the government was able to disburse money to the underprivileged and claimed that 70 per cent of the beneficiaries were women.
How PMMY is helping women and the underprivileged:
- A majority of the small scale businesses aren’t supported by banks as they remain outside the ambit of bank credits.
- Unorganised management of credit facility never reached small business owners. PMMY helped in fulfillment of small entrepreneurs’ needs.
- The scheme provided transparency to both financial institutions and entrepreneurs for solving issues related to repayment by creating a single platform for both.
- The scheme has three options for the beneficiaries:
- Shishu (loans up to Rs 50,000)
- Kishore (loans up to Rs 50,000-5 lakh)
- Tarun (loans up to Rs 10 lakh)
This means the scheme can benefit a wide range of people, from women who want to start business at home to businesses that would require an investment of up to Rs 10 lakh.
Localisation:
Mudra Bank partners with local coordinators and provides finance to small businesses who faced issues earlier due to limited branch presence.
Does Pradhan Mantri Mudra Yojna only benefit SC/ST/OBC?
In the last year, Pradhan Mantri Mudra Yojna has loaned money worth Rs 1.8 crore to small businesses out which 35 per cent of the recipients belonged to OBC, 20 per cent belonged to SC and 5 per cent fell in the category of ST.
While many appreciated the success of the scheme that claims to cater to the needy, some argued that it can be provided to those who fall under the General category as well.
There are arguments that people who belong to the General class have ideas and passion for ventures but are denied bank loans.
Source: India Today
