Public sector banks will organise mega credit campaigns across the country to give a push to the Pradhan Mantri Mudra Yojana (PMMY). This campaign is expected to create a sound eco system subsequently for bank credit to aspiring entrepreneurs especially small and micro entrepreneurs.
All PSBs, Regional Rural Banks and Private sector banks have a target of Rs 1.22 lakh crore during the current financial year for disbursement to small and micro enterprises up to Rs 10 lakh. As of September 22, 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.
Points to Note
PMMY loans fall into three categories
- Shishu (up to Rs 50,000)
- Kishore (between Rs 50,000 – Rs 5 lakh)
- Tarun (between Rs 5 lakh to Rs 10 lakh).
MUDRA Ltd. has been established as a subsidiary of SIDBI. The bank will have a initial corpus of ₹20,000 crore and a credit guarantee fund of ₹3,000 crore.
Small manufacturing unit, Shopkeepers, Fruits / Vegetable vendors, Artisans are eligible to borrow from MUDRA Bank.
The current focus of the government is on the Shishu category of micro loans, so that the borrowers do not have to access credit from informal sources such as money lenders at high interest rates.
