Mega credit campaigns are being conducted all over the country by Public Sector Banks

Mega credit campaigns are being conducted all over the country by Public Sector Banks (PSBs) from 25th September to 2nd October 2015 in order to not only generate greater credit to micro enterprises but also create a sound eco system subsequently for bank credit to aspiring entrepreneurs especially small and micro entrepreneurs under the Pradhan Mantri Mudra Yojana (PMMY). Micro entrepreneurs, very small traders, fruit sellers, and mechanics etc. would be actively participating in the said campaign. Beside Mega credit Campaigns, public awareness is continuing to be generated through the print media, radio jingles and use of banners and posters so that prospective micro entrepreneurs are sensitised about the availability of finance through the formal banking system under PMMY.

MUDRA has been established as a subsidiary of SIDBI, with an initial corpus of Rs. 5,000 crore to provide refinance to all banks seeking refinancing of small business loans under PMMY. During the current financial year 2015-16, up to 22nd September 2015, a total of 35.60 lakh borrowers have availed of credit under Mudra to the tune of Rs. 24,123 crore. Of these, 52% beneficiaries are women and about 50% new enterprises. All Public Sector Banks, Regional Rural Banks and Private sector banks have a target of Rs. 1, 22,000 crore during the current financial year for disbursement to small and micro enterprises up to Rs. 10 lakhs. As per extant guidelines, such loans do not need to be supported by collateral security. There are about 5.77 crore small business units in the country in the informal sector which is targeted for benefit under the PMMY, apart from new aspiring micro entrepreneurs.

Steps have been initiated to link trainees of various Government and other institutions with banking finance channels, to advance the skill development effort of the Government to self employment. The Mega credit campaigns are to run from 25th September to 2nd October 2015.

The Pradhan Mantri Mudra Yojana (PMMY) is a significant initiative by the Government to secure bank finance to the vast segment of the population occupied in the informal sector which does not have access to formal bank credit and is forced to rely on informal sources of finance at high cost. Once this unfunded or underfunded segment of the economy is included in the mainstream of bank finance, the lower cost of debt should enhance livelihoods while also bringing them into the growth stream of the economy.

PMMY loans fall into three categories, Shishu (upto Rs. 50,000), Kishore (between Rs. 50,000 - Rs. 5 lakh) and Tarun (between Rs. 5 lakh to Rs. 10 lakh). The current focus of the Government is on the Shishu category of micro loans which encompass a range of small activities like shopkeepers, fruit sellers, vegetable vendors, mechanics, barbers, cobblers, small manufacturing units and a lot of other small service sector enterprises which borrow from money lenders and informal sources

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