Banks Sanction ₹ 23 Lakh Crore To 41 Crore Beneficiaries Under PM Mudra Yojana

PM Mudra Yojana On eighth anniversary, Finance Minister Nirmala Sitharaman stated, “Since its inception, approximately 23.2 lakh crore has been sanctioned in 40.82 crore loan accounts as of March 24, 2023.”

New Delhi:- India – Banks and financial institutions have sanctioned 23.2 lakh crore to over 40.82 crore beneficiaries under the Mudra Yojana, which was launched eight years ago to fund the unfunded.

Mr. Pradhan Mantri Prime Minister Narendra Modi launched the PM Mudra Yojana (PMMY) on April 8, 2015, to facilitate easy collateral-free micro-credit of up to 10 lakh to non-corporate, non-farm small and micro-entrepreneurs for income-generating activities.

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Loans under PM Mudra Yojana (PMMY) are made available by Member Lending Institutions (MLIs), which include banks, non-banking financial companies (NBFCs), microfinance institutions (MFIs), and other financial intermediaries, according to a statement issued by the finance ministry on Saturday.

On the occasion of the scheme’s eighth anniversary, Finance Minister Nirmala Sitharaman stated, “Since its inception, approximately 23.2 lakh crore has been sanctioned in 40.82 crore loan accounts as of March 24, 2023.”

About 68% of the accounts under the scheme are held by women business owners, and 51% are held by business owners who fall under the SC/ST and OBC categories. This shows how readily available credit to the nation’s aspiring entrepreneurs has sparked innovation and sustained growth in per capita income, she continued.

The finance minister emphasised indigenous growth through MSMEs, saying, “The growth of MSMEs has contributed massively to the ‘Make in India’ programme, as strong domestic MSMEs lead to increased indigenous production both for domestic markets and for exports.” The PM Mudra Yojana ( PMMY )scheme has contributed to the creation of large-scale job opportunities at the grassroots level, and it has also proven to be a game changer in terms of boosting the Indian economy.”

Bhagwat K Karad, Minister of State for Finance, stated that the PM Mudra Yojana ( PMMY ) scheme aims to provide micro-enterprises in the country with collateral-free access to credit in a seamless manner.

“It has incorporated the underserved and underserved segments of society into the institutional credit framework. Millions of MSME businesses have been brought into the formal economy by the government’s promotion of MUDRA, and it has also enabled them to escape the grasp of moneylenders who offer extremely expensive financing, he continued.

Banking the Unbanked, Securing the Unsecured, and Funding the Unfunded are the three pillars on which the financial inclusion (FI) programme is being implemented in the nation.

Banks were asked to offer collateral-free loans up to 10 lakh under three categories: Tarun (10 lakh), Kishore (between 50,000 and 5 lakh), and Shishu (up to 50,000). The programme was created to support small businesses.

Shishu accounts for 83% of the total loans, with Kishore accounting for 15% and Tarun accounting for the remaining 2%.

The targets have been met since the scheme’s inception, with the exception of 2020-21 due to the Covid-19 pandemic, according to the statement.