Union Minister for Finance & Corporate Affairs, Nirmala Sitharaman announced on Saturday that about ₹23.2 lakh crore has been sanctioned in 40.82 crore loan accounts under the Pradhan Mantri MUDRA Yojana (PMMY) since it was launched on 8 April 2015 by Prime Minister Narendra Modi, PIB stated.
“Since the launch of the scheme, as of 24.03.2023, about ₹23.2 lakh crore has been sanctioned in 40.82 crore loan accounts. 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,” Sitharaman.
Upon marking successful 8th anniversary of the Union FM said, “Brought under the visionary leadership of Prime Minister Shri Narendra Modi, 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.”
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Highlighting indigenous growth through MSMEs, she said, “The growth of MSMEs has contributed massively 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 in the generation of large-scale employment opportunities at the grassroots level and also has proved to be a game changer while boosting the Indian economy.”
PMMY was launched with the aim to facilitate easy collateral-free micro credit of up to ₹10 lakh to non-corporate, non-farm small and micro entrepreneurs for income generating activities. The loans under PMMY are provided by Member Lending Institutions (MLIs), i.e., Banks, Non-Banking Financial Companies (NBFCs), Micro Finance Institutions (MFIs) and other financial intermediaries.
On the occasion, Union Minister of State (MoS) for Finance Dr Bhagwat Kisanrao 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.”
The implementation of financial inclusion programme in the country is based on three pillars, namely, Banking the Unbanked, Securing the Unsecured and Funding the Unfunded.
The features of PMMY are:
1.The loans have been divided into three categories based on the need for finance and stage in maturity of the business. These are Shishu (loans up to ₹50,000/-), Kishore (loans above ₹50,000/- and up to ₹5 lakh), and Tarun (loans above ₹5 lakh and up to ₹10 lakh).
2.Loans under PMMY are provided to meet both term loan and working capital components of financing for income generating activities in manufacturing, trading and service sectors, including activities allied to agriculture such as poultry, dairy, beekeeping, etc.
3.The rate of interest is decided by lending institutions in terms of RBI guidelines. In case of working capital facility, interest is charged only on money held overnight by borrower.
#PMMudraYojana has played a vital role in funding the unfunded and ensuring a life of dignity as well as prosperity for countless Indians. Today, as we mark #8YearsOfMudraYojana, I salute the entrepreneurial zeal of all those who benefitted from it and became wealth creators. https://t.co/y61ziXV74J
— Narendra Modi (@narendramodi) April 8, 2023
