Synopsis
The Pradhan Mantri Mudra Yojana (PMMY) completes 10 years, marking a significant impact on financial conditions and self-employment opportunities across India. Experts highlight the scheme's achievements and emphasize its role in promoting entrepreneurship, particularly for women.Key Takeaways
- PMMY launched in April 2015 by PM Modi.
- Offers loans under Shishu, Kishor, and Tarun categories.
- New Tarun Plus category for loans up to Rs 20 lakh.
- 52 crore loans disbursed totaling Rs 33 lakh crore.
- Women prioritized; NPAs at 3.5%.
New Delhi, April 8 (NationPress) With the Pradhan Mantri Mudra Yojana (PMMY) marking a decade of its existence, a specialist expressed on Tuesday that the initiative has significantly enhanced the financial well-being of individuals nationwide and has dramatically encouraged self-employment.
Ashwini Rana, the founder of Voice of Banking, mentioned that Prime Minister Narendra Modi initiated the PM Mudra Yojana in April 2015 with the aim of offering financial assistance to those aspiring to launch their own ventures.
The program provides loans across three distinct categories: Shishu, Kishor, and Tarun. The Shishu category comprises loans up to Rs 50,000, Kishor caters to loans ranging from Rs 50,001 to Rs 5 lakh, while Tarun encompasses loans between Rs 5 lakh and Rs 10 lakh.
Recently, a new tier known as Tarun Plus was introduced, offering loans up to Rs 20 lakh.
“In the last decade, around 52 crore Mudra loans totaling Rs 33 lakh crore have been disbursed under this scheme,” Rana stated.
“This initiative has significantly uplifted the financial status of countless individuals and has fostered self-employment on a broad scale,” he added.
He also emphasized that women have been prioritized within the scheme, with participation from not only public sector banks but also private banks and non-banking financial companies (NBFCs) playing a crucial role in the execution of PMMY.
The current non-performing asset (NPA) rate for the scheme is at 3.5 percent. In relation to this, Rana clarified that NPAs are a prevalent concern in all types of lending; however, for Mudra loans, the government serves as a guarantor.
“Thus, if a loan becomes an NPA, the losses experienced by banks are reimbursed by the government,” he remarked.
Praising the initiative's success, Rana stated, “PM Mudra Yojana has achieved all its intended goals and remains a crucial scheme for fostering entrepreneurship and financial inclusion in India.”
