M. Nagaraju: PM Mudra Yojana Empowers Millions
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Synopsis
As the Pradhan Mantri Mudra Yojana marks its 10th anniversary, DFS Secretary M. Nagaraju highlights its significant impact, having sanctioned over Rs 32.6 lakh crore in loans. The scheme has empowered millions, especially women and marginalized communities, driving self-employment and entrepreneurship across India.
Key Takeaways
- Over Rs 32.6 lakh crore sanctioned through loans.
- Impact on self-employment and entrepreneurship.
- First-time entrepreneurs comprise 20 percent of beneficiaries.
- NPAs at a low 2.21 percent.
- Nearly 70 percent of loans went to women.
New Delhi, April 7 (NationPress) As the Pradhan Mantri Mudra Yojana (PMMY) approaches its 10th anniversary on April 8, M. Nagaraju, the Secretary of the Department of Financial Services (DFS) within the Union Finance Ministry, announced that the initiative has reached a remarkable achievement, sanctioning over Rs 32.6 lakh crore through more than 52 crore loans.
The program has played a pivotal role in fostering self-employment and entrepreneurship throughout India, he stated.
"The scheme has profoundly impacted individuals' lives, particularly women, SC/ST, OBC, and those residing in rural areas who previously lacked access to collateral and formal credit," Nagaraju informed IANS.
"Numerous beneficiaries started with no land, collateral, or financial history. Nevertheless, they received assistance through the PM Mudra Yojana and have successfully initiated and expanded their businesses," he explained.
Emphasizing the economic empowerment driven by the scheme, Nagaraju remarked: "Over 20 percent of beneficiaries are first-time entrepreneurs. These individuals had never secured a loan from any bank or financial institution before. This marks a significant transformation."
He also noted that the scheme boasts a robust recovery rate, with NPAs currently at just 2.21 percent as of last month, highlighting the credit discipline among borrowers.
"Despite being collateral-free, the repayment history is commendable. This indicates that individuals are utilizing Mudra loans wisely and for productive endeavors," Nagaraju shared with IANS.
To enhance the ecosystem further, DFS has rolled out new initiatives such as 'Tarun Plus', allowing eligible individuals to obtain loans up to Rs 20 lakh without any guarantee.
"We have also included 'Mudra Homestay' to support tourism-related businesses under the scheme," he added.
Statistics from the Finance Ministry show that nearly 70 percent of Mudra loans have been granted to women entrepreneurs, underscoring the scheme's role in fostering financial inclusion and gender equality.
In regions like Jammu & Kashmir, over 20.7 lakh loans have been sanctioned, reflecting the extensive outreach of the initiative.
The International Monetary Fund (IMF) has also commended the scheme in its 2024 report, asserting that Mudra has enhanced the number of women-owned MSMEs and contributed to the formalization of the Indian economy through self-employment.
