Prime Minister Narendra Modi on Sunday expressed delight over the completion of three years of Pradhan Mantri Mudra Yojana (PMMY) which was introduced to cater to entrepreneurs who are either in their early stage or require lesser funds in order to get their business running.
Taking to Twitter, Modi said, “On this day, three years ago the Mudra Yojana was launched to give wings to the aspirations of our citizens and harness the entrepreneurial energy among our youth. Three years on, I am delighted to see how Mudra Yojana has brought prosperity in the lives of many.”
He added, “The Mudra Yojana is furthering a spirit of enterprise and self-reliance among the youth and women of India. A substantial number of Mudra beneficiaries are women and youngsters from the SC, ST and OBC communities, which is extremely heartening.”
“Through Mudra Yojana, the MSME (micro, small and medium enterprises) sector is receiving a substantial impetus. MSME is a sector that is crucial for India’s transformation and our Government is undertaking a series of steps and reforms to facilitate further growth in the sector.”
The PM also said that he will be interacting with beneficiaries of the scheme at his residence during a special programme on April 11. “On 11th April, I look forward to a special programme! I will be interacting with beneficiaries of the Mudra Yojana at my residence. It would be wonderful to speak to them and personally hear about their journeys,” he tweeted.
Modi invited entrepreneurs and businessmen to share their success stories on social media. He said, “Dear friends on social media, do share with me success stories of Mudra Yojana that you know about. I would love to meet some of the friends from the world of social media who share these stories!”
WHAT IS THE SCHEME ALL ABOUT?
The PMMY was launched on April 8, 2015 with an aim to provide loans upto Rs 10 lakh to non-corporate, non-farm small or micro enterprises. According to information available on its official website, the loans are issued by commercial banks, RRBs, small finance banks, co-operative banks, micro finance institutions (MFI) and non-banking financial companies (NBFC).
Non–corporate small business segment comprising of millions of proprietorship or partnership firms running as small manufacturing units, service sector units, shopkeepers, fruits or vegetable vendors, truck operators, food-service units, repair shops, machine operators, small industries, artisans, food processors and others, in rural and urban areas, are eligible for the scheme.
Any Indian Citizen who has a business plan for a non farm income generating activity such as manufacturing, processing, trading or service sector whose credit need is less than Rs 10 lakh can approach either a Bank, MFI or NBFC for availing the loan. The usual terms and conditions of the lending agency may have to be followed. The lending rates are as per the RBI guidelines issued in this regard from time to time.
HOW DOES IT WORK?
The borrower can approach any of the lending institutions mentioned above or can apply only through the website. MUDRA has created three products, namely ‘Shishu’, ‘Kishore’ and ‘Tarun’ to highlight the stage of development and funding needs of the beneficiary micro unit or entrepreneur. While ‘Shishu’ covers loans upto Rs 50,000, ‘Kishore’ provides loans between Rs 50,000 and Rs 5 lakh. ‘Tarun’, on the other hand, allows for loans ranging from above Rs five lakh to Rs 10 lakh. This will help provide a reference point for the next phase of graduation or growth.
According to the government, 4,53,51,509 number of loans were sanctioned during the financial period 2015-16. While Rs 228144.72 crore was sanctioned, Rs 220596.05 crore was disbursed.
WHO MONITORS THE IMPLEMENTATION OF THE SCHEME?
The monitoring of PMMY progress at the state level is done through a forum of the State Level Bankers’ Committee and by MUDRA/Department of Financial Services at the national level. For this purpose, MUDRA has developed a portal, wherein the banks and other lending institutions directly feed their achievement details which is consolidated by the system and reports are generated for review.