MUDRA will instil self-confidence among small traders: Venkaiah

‘It is aimed at saving them from private moneylenders’

Union Urban Development Minister M. Venkaiah Naidu handing over a video camera bought with MUDRA loan to a beneficiary at the mega campaign in Visakhapatnam on Wednesday. —photo: C.V. Subrahmanyam

The Micro Units Development and Refinance Agency (MUDRA) under the Pradhan Mantri Mudra Yojna is meant to instil self-confidence and self-reliance among those doing small businesses and roadside vendors, and strengthen their economic condition, Union Minister for Parliamentary Affairs and Urban Development M. Venkaiah Naidu has said.

He was speaking after inaugurating a mega MUDRA campaign here on Wednesday.

A large number of beneficiaries descended on the port’s Kalavani auditorium for the programme organised by the State Bank of India and the district administration.

Mr. Venkaiah Naidu distributed RuPay debit cards of MUDRA, co-branded by several banks, among the beneficiaries.

He said that MUDRA was meant to save the small businessmen from private moneylenders as loan ranging from Rs.50,000 to Rs.10 lakh were being given in three categories without seeking guarantee or collateral security.

“The loan you are receiving is people’s money and you have to repay the loan so that more loans could be given. There is no politics and benefit would be extended to every eligible person,” Mr. Venkaiah Naidu told the beneficiaries.

“MUDRA Yojna is a pro-poor initiative that is aimed at funding the unfunded and its good results would be seen in two to three years,” he hoped.

RBI has allocated Rs.20,000 crore towards refinance fund and the Union Government would allocate Rs. 3,000 crore to the MUDRA Bank to create credit guarantee corpus for guaranteeing loans.

By March next, as many as 1.25 crore, meaning 60 crore families, should get MUDRA benefit.

In Visakhapatnam, SBI has sanctioned 3,315 loans so far as against the target of 3,200 loans.

Earlier, MP K. Haribabu said that the scheme would benefit SCs, STs, BCs, and minorities, who make-up the bulk of micro entrepreneurs.

Anakapalle MP M. Srinivasa Rao wanted that MUDRA be extended to rural areas.

Collector N. Yuvaraj, MLAs, SBI’s Chief General Manager Hardayal Prasad, General Managers Ashwin K. Mehta and K.N. Nayak, Deputy General Manager Ajoy Kumar Pandit, and top executives of various banks were present.