New Delhi, May 9 (KNN) The motto of MUDRA although is good but the implementation has not happened in a proper way due to which the benefit of the scheme has not reached up to support last mile borrowers, feels the experts.

The Confederation of All India Traders (CAIT) has drawn attention of Union Finance Minister Arun Jaitley towards the recent report of Parliamentary Standing Committee pertaining to Ministry of MSME which has recommended more inclusive role of Micro Finance Institutions and Non-Banking Finance Companies for disbursement of loans under Mudra so that it may reach to last mile borrowers.

The report was submitted to the Parliament on 3rd May,2016 by the Parliamentary panel.

"The report of the Committee assumes much significance in as much as it is stated that loans under Mudra for more than One lakh crore have been disbursed so far but it is also a fact that very neglected percentage of last mile borrowers could able to obtain loans under Mudra whereas the Mudra was launched primarily to support last mile borrowers in small businesses but they are still deprived of the loans,” said the CAIT.

Talking to KNN, eminent Economist V N Suri said, “I agree with what CAIT has said. Although MUDRA is a very good scheme, but still its implementation plan is poor.”

He said that the “unfunded” are still not able to avail benefit under the scheme.

“There is a lack of awareness regarding the scheme for which the nodal agencies and officers should take initiatives, advertise in a big way through television, radio and hoardings. People should be informed about the complaint cell. Lack of awareness can lead to failure of the programme,” Suri opined.

Meanwhile, CAIT National President B C Bhartia and Secretary General Praveen Khandelwal said that the tag line of MUDRA “Funding for Unfunded" gives a clear message that it is meant for those who have been deprived of financial assistance by the core banking sector.

“There are about 5.77 crore small businesses in the Country and out of which only 4% could able to obtain loans from formal Institutions and rest 96% were dependent upon money lenders and private sources for getting financial assistance. However, so far the last mile borrower has not been able to get requisite finance from the Banks who have done major refinancing so far under MUDRA,” said CAIT officials.

The report of the parliamentary panel has also stated that in first trench of Rs.5000 crore made avilable to MUDRA, only 2184 crore were sanctioned out of which only Rs.1364 crore were disbursed.

It appears that out of more than Rs.1 lakh crore so far disbursed under MUDRA, the major financing has been done to existing borrowers and it is yet to reach the last mile borrower who is deprived of funds and for whom actually MUDRA was launched, CAIT highlighted. (KNN Bureau)