Over 408.2 Mn Loans Of Rs 23.2 Trillion Sanctioned Under PMMY: Finance Ministry
The Pradhan Mantri Mudra Yojana (PMMY) has sanctioned over 408.2 million loans totalling Rs 23.2 trillion until 24 March 2023, the finance ministry said on its eighth anniversary on Saturday.
PMMY intends to provide micro-entrepreneurs with convenient collateral-free finance of up to Rs 10 lakh for income-generating activities.
The system divides loans into three categories based on the need for money and the stage of maturity of the business. The three are Shishu (loans up to Rs 50,000), Kishore (loans beyond Rs 50,000 and up to Rs 5 lakh) and Tarun (loans above Rs 5 lakh and up to Rs 10 lakh).
Prime Minister Narendra Modi stated that PMMY has played a critical role in paying the underfunded and creating a dignified and prosperous life for innumerable Indians.
“Today, as we celebrate the eight-year anniversary of the Mudra Yojana, I salute the entrepreneurial zeal of all those who benefited from it and became wealth creators,” he added.
Approximately 69 per cent of total loans have been sanctioned to women entrepreneurs, while 51 per cent of loans have been sanctioned to SC/ST and OBC borrowers.
Nirmala Sitharaman, Union Minister for Finance and Corporate Affairs, stated that the initiative has helped to provide large-scale employment possibilities at the grassroots level and has also proven to be a game changer in terms of improving the Indian economy.
“The growth of Micro, Small and Medium Enterprises (MSMEs) has significantly aided the 'Make in India' programme, as strong domestic MSMEs lead to increased indigenous production for both domestic and export markets,” she noted.
Bhagwat Kisanrao Karad, Union Minister of State for Finance, stated that the scheme had brought the unserved and underserved segments of society inside the framework of institutional lending.
“The government's policy of promoting MUDRA has led millions of MSME enterprises into the formal economy and assisted them in breaking free from the clutches of moneylenders offering very high-cost funds,” he added.
The PMMY, which is being launched with the goal of providing loans to small enterprises, reflects one of the pillars of financial inclusion — funding the underfunded.
On 13 April, the finance ministry will convene a meeting of the managing directors (MD) and chief executive officers (CEOs) of public sector banks (PSBs), as well as the CEO of the National Payments Corporation of India (NPCI), to assess progress on financial inclusion and social security initiatives.
The meeting, which Financial Services Secretary Vivek Joshi will head, will discuss programmes such as the PMMY, Stand Up India, and the Prime Minister Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi), among others.
