MUDRA: Rs 1.8 lakh cr to be forked in FY17

Banks are expected to disburse Rs 1.80 lakh crore as loans under Micro Units Development and Refinance Agency (MUDRA) Bank Yojana during the current financial year, MUDRA Bank chief executive Jiji Mammen said on Tuesday. “We started our operations from April 2015. The total target for 2015-16 was Rs 1.22 lakh crore, against which by the end of the year Rs 1.33 lakh crore was disbursed by all banks and

MFIs (microfinance institutions), exceeding the target,” Mammen said. “In 2016-17, the government has set a target of Rs 1.8 lakh crore to be disbursed under MUDRA. So far, during the first quarter, the banks have disbursed Rs 25,000 crore.”

He said, of the total loans disbursed, banks contributed Rs 87,000 crore while MFIs’ contribution was Rs 46,000 crore.

Under the Pradhan Mantri Mudra Yojana (PMMY), loans ranging from Rs 50,000 to Rs 10 lakh are provided to small entrepreneurs.

As of now, three products available under PMMY are Shishu, Kishor, and Tarun, to signify the stage of growth and funding needs of the beneficiary micro-units or entrepreneurs.

According to him, around 80 per cent of the loans were disbursed to women and 36 per cent of the entities financed were new entities.

Replying to a query, he said MUDRA is in the process of coming up with a user–friendly website for entrepreneurs seeking loans. “We are also planning to bring in enterprises allied to agricultural activity such as dairy and food processing under Mudra Yojana,” he said.