Banks provide Rs 1.80 lakh crore under Mudra; exceed FY17 target

Banks provide Rs 1.80 lakh crore under Mudra; exceed FY17 target

NEW DELHI:   Banks sanctioned(स्वीकृत) a little over the targeted Rs 1.80 lakh crore under the Pradhan Mantri Mudra Yojana (PMMY) in 2016-17 notwithstanding(बावजूद) the impact of demonetisation on banking services for at least two months. Loans extended under the Mudra scheme surpassed (पार किया) the target of Rs 1.80 lakh crore, a finance Ministry statement said. According to estimates, loans totalling Rs 1,80,087 crore were sanctioned under the scheme. Of the total loans sanctioned, Rs 1.23 lakh crore was provided by banks, while Rs 57,000 crore was given by non- banking institutions. 

The demonetisation of Rs 500 and Rs 1,000 notes in November 2016 impacted(प्रभावित) banking operations throughout the country, but it did not have any bearing on the operation of the PMMY scheme.

The PMMY data indicate that loans were provided to about four crore borrowers of which over 70 per cent were women.

The statement further said that about 20 per cent of the borrowers were from the Scheduled Caste category, 5 per cent from the Scheduled Tribe category, while Other Backward Classes accounted for almost 35 per cent of the borrowers. "The robust 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 added. The Union Budget has announced a lending target of Rs 2.44 lakh crore under Mudra scheme for 2017-18. Mudra Loans are made available for non-agricultural activities up to Rs 10 lakh. These also include activities like dairy, poultry, bee keeping etc, are also covered.

Under the scheme a borrower can access working capital through ATMs and card machines, the statement said, adding "evaluation studies show that banks have been proactive in identifying and disbursing loans to first time borrowers thereby weaning them away from money lenders".

Brief background for introduction of MUDRA Loan Scheme by Govt. of

India

As per NSSO survey (2013), there are around 5.77 crore small/micro units in the country, engaging around 12 crore people, mostly individual proprietorship/Own Account Enterprises. Over 60% of units are owned by persons belonging to Scheduled Caste, Scheduled Tribe or Other Backward Classes. Most of these units are outside the formal banking system, and hence are forced to borrow from informal sources or use their limited owned funds. MUDRA Loan Scheme has been proposed to bridge this gap. MUDRA Loan Scheme will aim to increase the confidence of the aspiring young person to become first generation entrepreneurs as also of existing small businesses to expand their activities.

Brief details of the Product

MUDRA loans are extended by banks, NBFCs, MFIs and other eligible financial intermediaries as notified by MUDRA Ltd. The Pradhan Mantri MUDRA Yojana (PMMY) announced by the Hon’ble Prime Minister on 8th April 2015, envisages providing MUDRA loan, upto ` 10 lakh, to income generating micro enterprises engaged in manufacturing, trading and services sectors.

The overdraft amount of ` 5000 sanctioned under PMJDY has been also classified as MUDRA loans under Prime Minister MUDRA Yojana (PMMY).

The MUDRA loans are extended under following three categories :
Loans upto ` 50,000/- (Shishu)
Loans from ` 50,001 to ` 5 lakh (Kishore)
Loans from ` 5,00,001/- to ` 10 lakh (Tarun)
More focus would be given to Shishu.

Accordingly, all advances granted on or after 8th April 2015 falling under the above category are classified as MUDRA loans under the PMMY. The application forms for such loans shall also carry the name “Pradhan Mantri MUDRA Yojana”. 

Eligible borrowers

 Individuals

 Proprietary concern.

 Partnership Firm.

 Private Ltd. Company.

 Public Company.

 Any other legal forms.