Rs 23.2 lakh crore worth of loans given under PM Mudra Yojna, till date

10 Apr 2023 , 09:09 AM

Nirmala Sitharaman, the finance minister, has informed that Rs 23.2 lakh crore of loans have been given till date under Pradhan Mantri Mudra Yojna. These loans have been distributed among 40.82 crore  borrowers. 

Prime Minister Narendra Modi introduced the Pradhan Mantri MUDRA Yojana (PMMY) on April 8, 2015, to make accessible, collateral-free microcredit available to non-corporate, non-farm small and microentrepreneurs for the purposes of generating income.

According to a statement released by the finance ministry on Saturday, Member Lending Institutions (MLIs), which include banks, non-banking financial institutions (NBFCs), microfinance institutions (MFIs), and other financial intermediaries, issue loans under the PMMY programme.

‘The #PMMudraYojana has been instrumental in providing financing for unmet needs and safeguarding the prosperity and dignity of innumerable People. As we commemorate the #8YearsOfMudraYojana today, I applaud the entrepreneurial spirit of all those who benefited from it and created riches, ‘In a tweet, Prime Minister Narendra Modi stated.

Around 68% of the accounts under the scheme are held by women business owners, and 51% are held by business owners that fall under the SC/ST and OBC categories. This shows how readily available credit to the nation’s aspiring entrepreneurs has sparked innovation and sustained growth in per capita income, she continued.

The finance minister emphasized home growth through MSMEs and said, ‘The ‘Make in India’ initiative has benefited greatly from the rise of MSMEs since robust domestic MSMEs improve domestic production for both domestic and export markets. The PMMY program has contributed to the creation of significant employment opportunities at the community level and has changed the game in terms of advancing the Indian economy.’

Banking the Unbanked, Securing the Unsecured, and Financing the Unfunded are the three pillars on which the financial inclusion (FI) initiative is being implemented throughout the nation.

Banks were asked to offer three categories of loans under the scheme: Shishu (up to Rs50,000), Kishore (between Rs50,000 and Rs5 lakh), and Tarun (up to Rs10 lakh) for collateral-free loans ( Rs10 lakh).

Shishu is responsible for 83% of the total loans, followed by Kishore for 15% and Tarun for the final 2%.

The statement claimed that aside from 2020–21 owing to the Covid–19 epidemic, targets had been met from the program’s commencement.

For feedback and suggestions, write to us at [e-mail]