The proposed Mudra Bank will provide credit facilities to SC/ST businesses, Minister of State for Finance Jayant Sinha said today.
"I know, it is difficult for Schedule Caste and Schedule Tribes (SCs and STs) people to get loans. The Mudra Bank will help them in getting finance for their businesses," Sinha said at an event here.
The government has increased allocation for welfare of Schedule Caste and Schedule Tribes in the Budget 2015-16, he said. For SCs, Rs 30,851 crore has been allocated while Rs 19,980 crore for STs.
While presenting the Budget for 2015-16 in Parliament, Finance Minister Arun Jaitley had said, "I propose to create a Micro Units Development Refinance Agency, Mudra Bank with a corpus of Rs 20,000 crore and credit guarantee corpus of Rs 3,000 crore."
"The Mudra Bank will refinance institution through a Pradhan Mantri Mudra Yojana. The lending priority will be given to SC/ST enterprises," he had added.
There are 5.77 crore small business units that are mostly individual proprietorships, running small manufacturing and training business, he said, adding that 62 per cent of these are owned by Scheduled Caste, Scheduled Tribes and Other Backward Castes.
