Govt will help small entrepreneurs through the MUDRA Bank scheme
New Delhi : The government has set a target of disbursing Rs 1.22 lakh crore loans by banks to micro and marginal businesses under the Pradhan Mantri MUDRA Yojana (PMMY) by March, Finance Minister Arun Jaitley said while launching a week-long mega credit campaign for PMMY on the 99th birth anniversary of Deendayal Upadhyaya, an RSS ideologue. Jaitley said the government will help small entrepreneurs through the MUDRA Bank scheme.
Since its launch in April this year, loans of Rs 24,000 crore have been disbursed to about 37 lakh small entrepreneurs, he said.
MUDRA (Micro Units Development & Refinance Agency) is about funding the unfunded segment. Beginning Friday, week-long mega credit campaigns are being conducted all over the country by banks till October 2 to fund such enterprises and create a sound economic system subsequently by providing bank credit to aspiring entrepreneurs, especially small and micro entrepreneurs.
Jaitley said this will help people get funds from banks at affordable rates and become self-reliant by setting up own venture as there are limitations in job creation by public and private sector.
“We want to encourage crores of new entrepreneurs in the country. They will not be dependent on any kind of doles, but would be encouraged to stand on their own feet by these kinds of facilities,” he said. PMMY loans fall into three categories – Shishu (up to Rs 50,000), Kishore (Rs 50,000-Rs 5 lakh) and Tarun (Rs 5-10 lakh).
He said the government aims to cover around 1.75 crore small business people under MUDRA.
Jaitley also said these people will be exempted from furnishing any kind of bank guarantee to avail of loan under this facility.
During the current fiscal up to September 22, a total of 35.60 lakh borrowers have availed credit totalling Rs.24,123 crore from MUDRA. Of these, 52 percent beneficiaries are women and around 50 percent are new enterprises. PMMY loans do not need to be supported by collateral security.
