Mudra loans disbursement cross Rs 1.8 lakh crore

The ministry said, "Loans under Pradhan Mantri Mudra Yojana (PMMY) Scheme have been extended by banks, Non Banking Financial Companies (NBFCs) and Micro Finance Institutions (MFIs) to small/micro business enterprises since April 08th 2015 with the objective of ‘Funding the unfunded’ through institutional finance by providing loans upto 10 lakh for manufacturing, processing, trading, services and activities allied to agriculture."

Prime Minister Narendra Modi. Representational image. Pic: PIB

Key Highlights:

Govt says Mudra loans cross targetted Rs 1.8 lakh crore

8194 complaints are registered and forwarded to banks

The scheme was launched in 2015

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Loans under Pradhan Mantri Mudra Yojna (PMMY) or 'Mudra loans' crossed crossed its target of Rs 1.8 lakh crore for financial year 2015-16 to reach at Rs 1,80,528 crore, Ministry of Finance said on Tuesday.

The ministry said, "Loans under Pradhan Mantri Mudra Yojana (PMMY) Scheme have been extended by banks, Non Banking Financial Companies (NBFCs) and Micro Finance Institutions (MFIs) to small/micro business enterprises since April 08th 2015 with the objective of ‘Funding the unfunded’ through institutional finance by providing loans upto 10 lakh for manufacturing, processing, trading, services and activities allied to agriculture."

The data provided by the ministry of finance show that in the year 2015-16, the government targetted to Rs 1,22,188 crore worth of Mudra loans but sanctioned Rs 1,37,449 crore. The target for financial year 2015-16 rose to Rs 1,80,000 crore but the government santioned Rs 1,80,528 crore.

However, it hasn't been easy for citizens to avail these Mudra loans for their small businesses. 8194 complaints have been forwarded to respective Banks for redressal, the ministry said, adding, "Government has been receiving complaints with regard to implementation of PMMY from time to time including difficulties in obtaining loans. These are redressed in coordination with the respective Banks. Central Public Grievance Redress and Monitoring System (CPGRAMS) has received 8352 complaints against various banks in respect of the Scheme."

Prime Minister Narendra Modi launched Mudra loans in 2015 to help small entrepreneurs get loans for their businesses.

Mudra stands for Micro Units Development Refinance Agency.

Mudra loans are expected to be the last mile financiers of small and micro businesses as they are generally cut off from banking system.

Mudra loans are divided into three categories, firstly, Shishu, which will cover loans up to Rs 50,000. The second and third categories are Kishor and Tarun with loans from Rs 50,000 to Rs 5 lakh and Rs 5 lakh to Rs 10 lakh, respectively.

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