Mudra Loans

As of October 25, MUDRA loans amounting to Rs 28,511 crore or 12.4 per cent of the annual target for PSBs, is still under process

Finance Minister Nirmala Sitharaman had made an announcement regarding this in her July 2024 Budget speech

In August, the Finance Minister had said that public sector banks' non-performing assets (NPA) in the MUDRA loan category stood at 3.4 per cent in FY24, compared to 4.7 per cent in FY21

The government think tank NITI Aayog has pitched for a set of guidelines for assessing the creditworthiness and background verification for those availing loans under the Pradhan Mantri Mudra Yojana (PMMY). The Aayog in a report titled 'Impact Assessment of PMMY' suggested encouraging E-KYC authentication for loan underwriting. This will enhance the effectiveness of assessment checks. "A set of guidelines for assessing the creditworthiness and background verification must be enlisted to provide a security net to the banks, considering the loans are collateral free and a proper risk check and assessment has a critical role to play in the sustainability of results and success of the scheme," it said in the report posted on its website. The majority of borrowers under PMMY are small entrepreneurs who have very limited documents and this makes it difficult for the banks to run verification checks as it requires more staffing and employees. The Aayog also suggested that a proper reward

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Over 460 million loans worth Rs 27 trillion have been given so far under the yojana

Under the PM Mudra Yojana (PMMY), over 460 million loans worth Rs 27 trillion have been given so far

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The MUDRA loans are given by commercial banks, regional rural banks, small finance banks, microfinance institutions, and non-banking financial institutions

PMMY aims to facilitate easy collateral-free credit of up to Rs 10 lakh to micro-entrepreneurs for income-generating activities

A total of Rs 19.22 trillion loans have been sanctioned to 353 million borrowers under the scheme in seven years since inception

Minister of State for Finance, Bhagwat Karad will meet the PSB CEOs on September 16 in Aurangabad

The loan mela called Mudra was a populist and political move to give away money

Do we need yet another refinance agency? No one will shed a tear if Mudra is given a decent burial

According to the Centre, more than 28.68 crore loans for an amount of Rs 14.96 lakh crore have been sanctioned by banks, NBFCs and MFIs since the launch of PMMY

The scheme is meant to provide financial support to businesses, primarily Micro, Small and Medium Enterprises (MSMEs), impacted by slowdown triggered by the coronavirus pandemic

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