Loans under Pradhan Mantri Mudra Yojana to double to over Rs 100,000 crore (US$ 15.34 billion) by March
- IBEF
- August 19, 2015
New Delhi: The Ministry of Finance has planned to launch a campaign for loans under Pradhan Mantri Mudra Yojana (PMMY) with a view to double loan disbursement to the small business sector to over Rs 100,000 crore (US$ 15.34 billion) by fiscal end. Through this campaign, the Ministry hopes to cover 2-2.5 million new loans during the month of September, 2015. A specific target has been fixed for public sector banks, private sector banks, regional rural banks and foreign banks under Pradhan Mantri Mudra Yojana (PMMY). PMMY was launched by Prime Minister Mr Narendra Modi in April, 2015. Since its launch, about Rs 14,000 crore (US$ 2.14 billion) worth of loans have been disbursed under the scheme to 2 million individuals. PMMY provides loans below Rs 10 lakh (US$ 15,344) to small entrepreneurs. The Micro Units Development and Refinance Agency Ltd (MUDRA) focuses on the 57.5 million self-employed who use funds of Rs 11 lakh crore (US$ 168.78 billion) and provide jobs to 120 million people. Under PMMY campaign, loans up to Rs 50,000 (US$ 767) are planned to be given to small businesses in informal sector such as vegetable vendors, barbers, rickshaw pullers, service sector units like auto repairs, plumbing and electricians. Based on the growth stage and funding needs of the beneficiary micro unit or entrepreneur, three products are available under the PMMY namely Shishu, Kishor and Tarun. Shishu covers loans up to Rs 50,000 (US$ 767) while Kishor covers above Rs 50,000 (US$ 767) and up to Rs 5 lakh (US$ 7,672). Tarun category provides loans of above Rs 5 lakh (US$ 7,672) and up to Rs 10 lakh (US$ 15,344).
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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