Uneducated sector not given loans under MUDRA scheme due to lack of loan security: MSMEs

New Delhi, June 17 (KNN) The MUDRA funds which was launched with an aim to fund the unfunded is yet to reach the uneducated sector. Although a good scheme, the experts believe that its implementation still remains a big challenge.

Talking to KNN, Jasbir Singh, Chairman, Mohali Industries Association, said that “The Pradhan Mantri Mudra Yojna has only helped the educated sector. The uneducated sector is not given the loans because of lack of loan security”.

Pankaj Gupta, President, Industries Association of Uttarakhand, said that

“Banks are not very forthcoming lending under the mudra scheme. They are coming out with new conditions just to turn away the borrowers. That is one of the biggest problems. Mudra is one of the most wonderful schemes that the government came out with. Probably, the banks have to be really pro-active under this scheme because it takes care of its social entrepreneurship and everything."

“The purpose for which this scheme was set up is served, but the results could have been more effective if the banks were more pro-active.

The banks should be given targets and asked to fulfil those targets. It should be target oriented   per branch. They should strictly follow the targets," the President said.

With an objective to fulfil the financial needs of MSMEs, PM Narendra

Modi launched Micro Units Development and Refining Agencies(MUDRA) scheme on 8^th April, 2015.

Akash Jindal, Economist, said that “It is an okay scheme but it will take time for the benefits to reach the MSMEs. The purpose of this yojna is to ultimately reach the MSMEs in the uneducated sector. The idea is to help those who are not getting  money from formal sources and are very vital for our economy. The target are these small entrepreneurs only”. (KNN/FA)