About 68% of accounts under Mudra Yojana scheme belong to women entrepreneurs, and 51% of accounts belong to entrepreneurs of SC/ST and OBC categories (Representational image only.)
Banks and financial institutions have sanctioned ₹23.2 lakh crore to more than 40.82 crore beneficiaries under the Mudra Yojana launched to fund the unfunded eight years ago.
The Pradhan Mantri MUDRA Yojana (PMMY) was launched on April 8, 2015, by Prime Minister Narendra Modi to facilitate easy collateral-free micro-credit of up to ₹10 lakh to non-corporate, non-farm small and micro -entrepreneur for income – developing activities.
Loans under PMMY are provided by Member Lending Institutions (MLIs) — banks, non-banking financial companies (NBFCs), microfinance institutions (MFIs) and other financial intermediaries, the Finance Ministry said in a statement on April 8. .
Speaking on the occasion of the 8th anniversary, Finance Minister Nirmala Sitharaman said, “Since the launch of the scheme, on March 24, 2023, around ₹23.2 lakh crore has been sanctioned in 40.82 crore loan accounts” .
About 68% of the accounts under the scheme belong to women entrepreneurs, and 51% of the accounts belong to entrepreneurs of SC/ST and OBC categories. “This shows that the easy availability of credit to the budding entrepreneurs of the country has led to change and continued increase in per capita income,” he added.
Highlighting indigenous growth through MSMEs, the Finance Minister said, “The growth of MSMEs has contributed significantly to the ‘Make in India’ programme, as strong domestic MSMEs lead to increased indigenous production both for domestic markets as well as for exports. The PMMY scheme has helped generate large-scale employment opportunities at the grassroots level, and has also proved to be a game changer while boosting the Indian economy”.
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 underserved and underserved sections of society within the framework of institutional credit. The government’s policy of promoting MUDRA has led millions of MSME enterprises to the formal economy and helped them to get out of hand with money- lenders who offer exorbitant amounts of funds,” he added.
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 up to ₹10 lakh under three categories — Shishu (up to ₹50,000), Kishore (between ₹ 50,000 and ₹5 lakh) and Tarun (₹ 10 lakh).
“Overall, Shishu constitutes 83% of the total loans while Kishore is 15% and the remaining 2% Tarun. The targets have been met since the scheme barring started in 2020-21 due to the COVID-19 pandemic ,” the statement said.
