Over Rs 23.2 lakh crore loans sanctioned in eight years under Mudra Yojana

Tags: Government Schemes National News

Since the launch of the Pradhan Mantri Mudra Yojana (PMMY) eight years ago, more than 40.82 crore loans worth Rs 23.2 lakh crore have been sanctioned so far.

An overview of the news

• According to Finance Minister Nirmala Sitharaman, since the launch of the scheme on April 8, 2015, till March 24, 2023, about Rs 23.2 lakh crore has been sanctioned in 40.82 crore loan accounts.

• About 68 per cent accounts under the scheme are for women entrepreneurs and 51 per cent accounts are for SC, ST and OBC categories of entrepreneurs.

• This shows that easy availability of credit to budding entrepreneurs of the country has encouraged innovation and sustained growth in per capita income.

• He said that Mudra Yojana has helped in generating massive employment opportunities at the grassroots level and proved to be a game changer along with boosting the Indian economy.

Pradhan Mantri Mudra Yojana

• It was launched on 8 April 2015.

• Under the scheme, the people of the country are given loans up to a maximum of 10 lakhs to start their own small business.

• Any person who wants to further his business can take a loan under this scheme.

• Mudra card is issued to the people for taking loans under this scheme.

• Loans are provided through banks, non-banking financial companies (NBFCs), micro financial institutions (MFIs) and other financial intermediaries.

• More than 64 per cent of the loan accounts opened under the scheme are of women.

Three types of loans under Mudra Yojana

• Shishu- Loan up to Rs.50,000.

• Kishor - Loan above Rs.50,000 and less than Rs.5 lakh.

• Tarun – Rs. 5 lakhs and above Rs. Loan up to 10 lakhs.