Empowering MSMEs with News & Insights

78% of beneficiaries under Mudra Loan are women

Updated: Jul 24, 2017 06:35:33am
image

78% of beneficiaries under Mudra Loan are women

New Delhi, July 24 (KNN) As much as 78% of beneficiaries of Mudra loans have been women entrepreneurs. They are recipients of 50% of the Rs 3,55,590 crore sanctioned under the scheme to help micro businesses, according to data by Finance Ministry.

Finance Ministry revealed this in response to a question raised by BJP MP Vinay J Sahasrabuddhe

Around Rs 1,78,313 crore of loans sanctioned were to women who were self-employed and running businesses such as bakeries, paper products, food parlours, hair dressing and personal care. Other micro businesses, run by men and women, could include computer assemblers and roadside vendors.

The data also showed that 23% of the loan amounts sanctioned went to OBC beneficiaries, 10.5% to scheduled castes and 3% to scheduled tribes.

Meanwhile, Santosh Kumar Gangwar, Minister of State for Finance said this in written reply to a question in Rajya Sabha recently said that in the Financial Year 2016-17 as much as Rs 1,80,528 crore has been sanctioned under Pradhan Mantri Mudra Yojana (PMMY) Scheme to all units which has exceeded the target of Rs 1,80,000 crore.

Loans under PMMY Scheme have been extended by banks, Non-Banking Financial Companies (NBFCs) and Micro Finance Institutions (MFIs) to small/micro business enterprises since April 8, 2015 with the objective of ‘Funding the unfunded’ through institutional finance by providing loans upto 10 lakh for manufacturing, processing, trading, services and activities allied to agriculture.

In the FY 2015-16, amount of Rs 1,37,449 crore has been sanctioned as against the target of Rs 1,22,188 crore.

COMMENTS

  1. Suman
    Suman 19/08/2017 10:23 AM

    Even i want to open new business ,how i can apply loan for the same?

    Reply to this comment
  2. Syed Zahid Ahmad
    Syed Zahid Ahmad 25/07/2017 7:02 AM

    The Pradhan Mantri Mudra Yojna is missing products like micro equity and leasing of assets to support venture financing or to promote self employment in India. The Government should establish any specialized micro equity fund and leasing funds to support the youths seeking self employment by hiring capital on equity or lease mode instead of pure debts. The more and more indebted youth seeking self employment is going to be a big challenge for the nation; and the way loan waiving schemes are on demand, we are afraid, this will not only destruct the banking segment but would also damage the tax structure with increasing pressure to hike tax rates to reduce fiscal deficits. Government also cannot take granting the subsidy schemes for a long period with availability of debts at higher rates compared to developed nations. There is urgent need to reduce the interest rate and provide equity and lease finance to youth seeking capital to start up their venture for self employment. Otherwise the debts taken by youths at interest over 10% and subsidies thereupon will become a big challenge for India in coming years. There would be always high failure rates for starts up. Debt financing for starts up would always put banks and NBFCs under threats of NPA, however under micro equity the retrieved profit from successful ventures will help compensating losses under failed ventures. So, there is need to save our banking system along with supporting the youths seeking capital support for starts up.

    Reply to this comment

LEAVE A REPLY

Required fields are marked *