Pradhan Mantri Mudra Yojana | Loans worth Rs 45,949 crore disbursed to MSMEs

The government has provided loans worth Rs 45,949 crore  to micro and small enterprises till November 2015 end under the Prime Minister Mudra Yojana launched by Narendra Modi in April 2015.

The scheme was first proposed by Finance Minister Arun Jaitely in 2015 Union Budget to create a Micro Units Development Refinance Agency (MUDRA) Bank.

The purpose of the scheme is to provide formal access to credit for Non –Corporate Small Business Sector.

Any Indian citizen who has a business plan for a non-farm sector income generating activity such as manufacturing, processing, trading or service sector and whose credit need is less than 10 lakh can approach either a Bank, MFI, or NBFC for availing of MUDRA loans under Pradhan Mantri Mudra Yojana (PMMY).

Till November, the total number of borrowers are about 66 lakh, of which 23.51 lakh are women entrepreneurs, an official statement said.

The new entrepreneurs who secured loans under the scheme totaled 33.86 lakh and scheduled caste, scheduled tribe and other backward borrowers were 22.01 lakh, the statement said adding so far Mudra card have been issued to 1.9 lakh borrowers.

There are three categories of loans under the scheme aimed at encouraging start ups. Loans up to Rs 50,000 are provided under the category Shush, up to Rs 5 lakh under Kishore and up to Rs 10 lakh under Tarun category.

MUDRA Card is an innovative credit product wherein the borrower can avail of credit in a hassle free and flexible manner. Public Sector Banks have been allocated a total target of Rs.70,000 crore, and private sector/ Foreign Banks a target of Rs 30,000 crore.

The RRB were given a target of Rs 22,000 crore. All together, the target for loan disbursement under PMMY for FY 2015-16 is fixed at Rs 1,22,000 crore.