Modi says 52 crore loan given under MUDRA

Context

• Prime Minister Narendra Modi, interacting with beneficiaries here on Tuesday on the 10th anniversary of the Pradhan Mantri MUDRA Yojana, said the scheme has turned several dreams into reality, empowering people who were previously overlooked with financial support to shine. “It illustrates that for the people of India, nothing is impossible,” he said.

• Mr. Modi said 52-crore loans had been disbursed under the scheme so far. He said ₹33 lakh crore has been disbursed to the citizens of India under the scheme without the need for guarantees.

• He said half of the beneficiaries belonged to SC, ST and OBC communities, and over 70% of them are women.

PM Mudra Yojana (PMMY)

• The PMMY is a flagship scheme of the Government of India announced in 2015 during Union Budget FY-2016 to extend affordable credit to micro and small enterprises (MSMEs).

• Objective: To fund the unfunded by bringing MSMEs to the formal financial system and extending affordable credit to them.

• Type: Central Sector Scheme.

• Loans through Member Lending Institution (MLIs):

1Public Sector Banks,

2Private Sector Bank,

3State operated cooperative banks,

4Regional Rural banks,

5Micro Finance Institution (MFI),

6Non-Banking Finance Company (NBFC),

7Small Finance Banks (SFBs) etc.

• MUDRA (Micro Units Development & Refinance Agency Ltd.) is responsible for refinancing MLIs.

• MUDRA does not lend directly to the micro entrepreneurs/individuals. It lends to MLIs which in turn lend to borrowers

• Loans are provided to meet both term loan and short term working capital components of financing.

• Eligible borrowers: Non–Corporate Small Business Segment (NCSB) consisting of Individuals, Proprietary concern, Partnership Firm, Private Ltd. Company, Public Company and Any other legal forms.