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Pradhan Mantri Mudra Yojana tops target for 2016-17 loans cross target of Rs 1.8 lakh Crore

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Pradhan Mantri Mudra Yojana (PMMY) was announced by Finance Minister Arun Jaitley in the Union Budget for financial year 2016.

Important Facts:

Loans extended under the PMMY during 2016-17 have crossed the target of Rs 1.8 lakh crore.

  • It is an institution that would support the small entrepreneurs of India in the biggest possible way to help the Indian economy grow and prosper.
  • PM Modi mentioned that there is an urgent need to focus on some 5.75 crore self-employed people who use funds of around Rs 11 lakh crore, and have an average debt of merely Rs 17,000 but they end up employing 12 crore people.
  • The banks disbursed loans of Rs 1.23 lakh crore while non-banking financial institutions lent around Rs 57 thousand crore.Pradhan Mantri Mudra Yojana tops target for 2016-17, loans cross target of Rs 1.8 lakh crore
  • Estimated numbers of borrowers were more than 4 crore.
  • These 4 crore plus borrowers over 70 per cent were women. Some 20 per cent of the borrowers were from the Scheduled Caste Category, about 5 per cent from the Scheduled Tribes, while OBCs numbered for almost 35 per cent of the borrowers.
  • The Union Budget has announced a target of Rs 2.44 lakh crore for Mudra Loans.
  • These loans are made available for non-agricultural activities for upto Rs 10 lakh.
  • They are also used for allied-agricultural activities like dairy and poultry farming, Apiary or bee keeping etc.
  • Both public and private sectors have helped in identifying and extending loans to small and marginal borrowers, including first time borrowers.
  • These sectors also help in getting rid away from money lenders and ensuring their protection from financial exploitation and distress to small and medium term borrowers.
  • The Mudra Card feature encourages a user to access his/her cash via ATMs.
  • Provide an encouragement for digital transactions by the simple and quick documentation procedure.

Mudra Yojana

Micro Units Development and Refinance Agency.It is a new institution being set up by Government of India for development and refinancing activities relating to micro units.

  • The purpose of MUDRA is to provide funding to the non-corporate small business sector.
  • Loans worth about Rs 1 lakh crore have been sanctioned to small entrepreneurs under the Pradhan Mantri MUDRA Yojana.
  • Launched on 8th April 2015
  • Loan Amount: 50000-10 lakh
  • Schemes Stages: Shishu (Rs. 50k) Kishor (Rs.5lakh) Tarun (Rs10 Lakhs)