Indian Economy News

Rs 9.98 lakh crore sanctioned to 16.67 crore loan accounts under Pradhan Mantri Mudra Yojana in 3 years

According to the current guidelines, any individual who is otherwise eligible for a loan and has a business plan for non-farm income generating activities such as manufacturing, trading, services, and activities allied to agriculture and whose credit need is up to Rs.10 lakh (US$ 12,709) is eligible for credit under the Pradhan Mantri Mudra Yojana (PMMY).

Under PMMY, From 2019-20 to 2021-22, 16.67 crores of loans were issued, with a total sanctioned value of Rs. 9.98 lakh crore (US$ 126.84 billion). During a three-year period, PMMY contributed to the creation of 1.12 crore net additional jobs (i.e. from 2015-2018). Minister of State for Finance Dr. Bhagwat Kisanrao Karad claimed that loans under the Shishu category accounted for 66% of extra employment produced by MUDRA recipients' enterprises, followed by Kishore (19%) and Tarun (15%).

According to the Minister, 1,107 Centres for Financial Literacy (CFL) have been established across the country as of 30.06.2022, according to the Reserve Bank of India (RBI). These financial literacy centres, among other things, run training programmes to help rural residents develop business skills. Furthermore, to encourage village level entrepreneurs, banks provide training through their Rural Self Employment Training Institutes (RSETIs) with an emphasis on skill development and entrepreneurial growth of rural youth.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.