Over 28.68 crore loans for an amount of Rs 14.96 lakh crore sanctioned by banks, NBFCs and MFIs since the launch of the PMMY | Odisha News | Odisha Latest News
New Delhi: The Ministry of Finance is committed to providing financial inclusion and support to marginalized and heretofore socio-economically neglected classes. The financial needs of all stakeholders, from budding entrepreneurs to hardworking farmers, have also been met through various initiatives. A key initiative in this regard is Pradhan Mantri MUDRA Yojana (PMMY), which has given wings to the dreams and aspirations of millions of people, with a sense of self-esteem and independence.
The PMMY was launched by the Honorable Prime Minister on April 8, 2015 to provide loans up to Rs 10 Lakh to non-agricultural and non-agricultural small / microenterprises. As we celebrate PMMY’s sixth anniversary, we take a look at key aspects of this program and its achievements to date.
Why MUDRA Yojana?
India is a young country brimming with enthusiasm and youthful aspirations. In order to provide a fertile ground for sowing the seeds of India’s development, it is very important to harness this innovative zeal of young India, which can provide new solutions to the existing gaps in the country’s economic ecosystem. Understanding the need to harness the latent potential of entrepreneurship in India, the NDA government launched the Pradhan Mantri MUDRA Yojana in the very first budget.
How does MUDRA Yojana work?
Under PMMY unsecured loans up to Rs. 10 Lakh are extended by member lending institutions (MLI), namely calendar commercial banks, regional rural banks (RRB), small financial banks (SFB) , non-bank financial corporations (NBFC), microfinance institutions (MFIs), etc.
Loans are granted for income-generating activities in the manufacturing, trade and service sectors and for activities related to agriculture.
Mudra loans are offered in three categories namely, “ Shishu ”, “ Kishore ” and “ Tarun ” which signifies the stage of growth or development and the financing needs of borrowers: –
Shishu: covering loans up to Rs. 50,000 / –
Kishore: covering loans over Rs. 50,000 / – and up to Rs. 5 lakh
Tarun: covering loans over Rs. 5 lakh and up to Rs. 10 lakh
With the aim of promoting entrepreneurship among new generation budding young people, it is guaranteed that more attention is given to loans from the Shishu category, then to the Kishore and Tarun categories.
Achievements of this program (status of 19.03.2021)
More than 28.68 crore loans for an amount of Rs 14.96 lakh crore have been sanctioned since the launch of the program (as on 19.03.2021)
4.20 PMMY Crore loans sanctioned in 2020-2021 and Rs. 2.66 lakh Crore sanctioned in FY 2020-2021 (as on 03.19.2021)
Average ticket size for loans is around Rs 52,000 / –
88% of loans are in the ‘SHISHU’ category
Almost 24% of loans went to new entrepreneurs
About 68% of loans went to female entrepreneurs
About 51% of the loans went to SC / ST / OBC borrowers.
SCs and STs represent 22.53% of borrowers
CBOs constitute 28.42% of borrowers
About 11% of the loans went to borrowers from minority communities.
According to a survey conducted by the Ministry of Labor and Employment, PMMY contributed to the creation of an additional 1.12 crore net jobs from 2015 to 2018. Of the 1.12 crore estimated increase in employment employment, women accounted for 69 lakh (62%).