Loans given under the PMMY Scheme (Pradahan Mantri Mudra Yojana) is set to achieve the target of Rs.1.2 lakh crore by March 2016, according to Jiji Mammen, Chief Executive Officer of Micro Units Development & Refinance Agency Ltd (MUDRA).
Around Rs.75,000 crore have been given till December 2016, he said.
Nearly half of the 1.7 crore beneficiaries are people who are setting up new units while the rest have used the micro finance facility for expanding their units, he said on the sidelines of a conference of micro finance institutions in this region. The loans were disbursed by banks and MFIs. The PMMY Scheme was launched by Prime Minister Narendra Modi on April eight, 2015.
Banks and MFIs can draw refinance under the MUDRA Scheme after becoming member-lending institutions of MUDRA, opening for them an additional resource stream. However, so far, only around Rs.1,500 crore of this refinance facility has been provided to banks and MFIs, it was learnt. “While banks availed refinance facility to the tune of around Rs. 800 crore, the rest was accessed by MFIs mainly,” Mr. Mammen said.
The scheme, which aims at “reaching the unbanked segments,” provides loans to micro units in three categories ranging from Rs. 50,000 to Rs.ten lakh. He said during the summit that the north eastern sector will be given priority under the MUDRA Scheme . The scheme’s objective is to refinance collateral-free loans given by the lenders to small borrowers.
