PMMY: FM Sitharaman Praises Women's Empowerment and Financial Inclusion for Marginalized Communities
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Synopsis
Union Finance Minister Nirmala Sitharaman highlighted the significant contribution of women to the Pradhan Mantri MUDRA Yojana (PMMY), celebrating the scheme's role in promoting financial inclusion and empowering female entrepreneurs. The PMMY initiative continues to evolve, with enhanced loan limits set to foster growth among aspiring entrepreneurs in India.
Key Takeaways
- 68% of PMMY loans are sanctioned to women.
- Introduction of Tarun-Plus loans up to Rs 20 lakh.
- PMMY celebrates 10 years of empowering micro-entrepreneurs.
- Collateral-free loans up to Rs 10 lakh are available.
- CGFMU provides guarantee coverage for enhanced loans.
New Delhi, April 8 (NationPress) Union Finance Minister Nirmala Sitharaman remarked on Tuesday that it is encouraging to observe that approximately 68 percent of all Pradhan Mantri MUDRA Yojana (PMMY) loan accounts have been approved for women, serving as a vehicle for empowerment and enabling their contributions to national economic growth while also motivating future generations of female entrepreneurs.
Celebrating the scheme's influence, the Finance Minister stated that in accordance with the Budget 2024-25 announcement, “the addition of the Tarun-Plus category last year, featuring an increased loan ceiling of Rs 20 lakh, will further assist successful entrepreneurs in expanding their ventures and realizing their full potential.”
The PMMY, inaugurated on April 8, 2015, by Prime Minister Narendra Modi, is commemorating a decade of empowering small and micro-entrepreneurs throughout India.
Designed to promote financial inclusion, PMMY offers easy, collateral-free loans up to Rs 10 lakh for non-corporate and non-farm income-generating activities.
To enhance support for aspiring entrepreneurs, the Finance Minister declared an increase in the loan limit to Rs 20 lakh during the Union Budget 2024-25.
The newly introduced loan category, Tarun Plus, is specifically tailored for individuals who have previously obtained and successfully repaid loans under the Tarun category, granting them access to funding between Rs 10 lakh and Rs 20 lakh.
Moreover, the Credit Guarantee Fund for Micro Units (CGFMU) will now extend guarantee coverage for these enhanced loans, further solidifying the government’s dedication to fostering a strong entrepreneurial ecosystem in the nation.
“With over Rs 33.65 lakh crore sanctioned to more than 52 crore MUDRA loan accounts, the scheme has emerged as a significant milestone in realizing the dreams of millions of entrepreneurs, particularly those from marginalized sections of society,” stated FM Sitharaman.
“Since 2015, Rs 11.58 lakh crore worth of MUDRA loans have been allocated to various marginalized communities, including Scheduled Castes, Scheduled Tribes, and OBCs, fulfilling the Prime Minister's vision of 'Sabka Saath, Sabka Vikas, Sabka Vishwas, and Sabka Prayaas,'” she added.
According to Union Minister of State (MoS) for Finance, Pankaj Chaudhary, the PMMY stands as one of the most crucial initiatives not only within India but also globally, aimed at encouraging entrepreneurship.
“Financial inclusion remains a key priority for the government, as it plays a crucial role in achieving inclusive growth. PMMY serves as a platform for small entrepreneurs to obtain loan support from banks, NBFCs, and MFIs,” remarked Chaudhary.
While launching the initiative, PM Modi expressed that supporting India’s small entrepreneurs is among the most effective strategies to stimulate the Indian economy's growth and prosperity.
The scheme has delivered essential financial support to a vast number of entrepreneurs, aiding them in establishing and managing their businesses while instilling a sense of financial security.
