Under Mudra Scheme,Banks Provide Rs. 1.80 lakh crore
4 June 2018: Banks surpassed the target under government's flagship scheme PMMY by authorizing loans of more than Rs. 1.80 lakh crore to the unorganized sector last fiscal, notwithstanding the impact of demonetization on banking services for at least two months. With the objective to 'fund the unfunded', the government had put a loan target of Rs. 1.80 lakh crore under the Pradhan Mantri Mudra Yojana in 2016-17. "Sanctions currently stand at Rs. 1,80,087 crore with final data still awaited from some of the smaller non-banking lenders," said a finance ministry statement. Non-banking institutions lent about Rs. 57,000 crore while Rs. 1,23,000 crore was lent by the bank. The government had demonetized Rs. 500 and Rs. 1,000 notes last November, impacting banking operations throughout the country but it did not have any comportment on the operations of the PMMY scheme.
The Micro Units Development and Refinance Agency Ltd (MUDRA) emphasis on the 5.75 crore self-employed who use funds of Rs. 11 lakh crore and provide jobs to 12 crore people. Launched in April 2015 by Prime Minister Narendra Modi, the scheme provides for loans from Rs. 50,000 to Rs. 10 lakh to small entrepreneurs.
Data compiled so far shows the number of borrowers this year was over 4 crores, of which over 70 percent were women borrowers.
About 20 percent of the borrowers were from the Scheduled Caste Category, 5 percent from the Scheduled Tribe Category, while Other Backward Classes accounted for almost 35 percent of the borrowers.
"The achievements of both public sector banks and private banks have been extremely encouraging. The vigorous growth in bank loans to unfunded and underfunded segments is an indication of the emergence of this category of borrowers as a key driver of demand for credit," it said. The Budget has announced a target of Rs. 2.44 lakh crore for Mudra Loans during 2017-18. There would be a special focus within the Mudra Scheme on concurrence with other government schemes, deepening connect with borrowers and meeting credit requirements of trainees completing skilling course, it said. Mudra Loans are accessible for non-agricultural activities up to Rs. 10 lakh and activities associated with agriculture such as Dairy, Poultry, Bee Keeping etc, are also covered.
The statement further said that Mudra's unique qualities comprise a Card which permits access to working capital through ATMs and Card Machines. "Evaluation studies show that banks have been dedicated to recognizing and expending loans to first-time borrowers thereby weaning them away from money lenders. Borrowers particularly value three attributes of Mudra Loans viz, non-insistence on guarantor or indemnity, simple documentation, and quick processing," it said. The products which are available under the PMMY are Shishu, Kishor and Tarun to denote the stage of growth and funding needs of the beneficiary micro unit or entrepreneur.