New Delhi: Prime Minister Narendra Modi on Tuesday said more than Rs 33 lakh crore of collateral-free loans have been sanctioned under Mudra Yojana, empowering countless individuals to showcase their entrepreneurial skills.
Interacting with the select beneficiaries of the PM Mudra Yojana (PMMY) at his residence on the 10th anniversary of the scheme, he said it has helped promote the spirit of entrepreneurship among the youth of the country and given them confidence to become job providers rather than job seekers.
With the objective of funding the unfunded, Prime Minister Modi on April 8, 2015 launched PMMY to provide collateral-free institutional credit through Member Lending Institutions.
The prime minister urged individuals to inspire and support at least five to ten others, fostering confidence and self-reliance among them. He highlighted that 52 crore loans have been disbursed under the scheme, a monumental achievement unparalleled globally.
“It is particularly heartening that half of the Mudra beneficiaries belong to SC, ST and OBC communities, and over 70 per cent of the beneficiaries are women.
“Every Mudra loan carries with it dignity, self-respect and opportunity. In addition to financial inclusion, this scheme has also ensured social inclusion and economic freedom,” he said.
In the Mudra scheme, he said, the highest number of women have come forward. Women have applied for the most loans, received the most loans, and are also the fastest to repay them.
In last 10 years, the prime minister said Rs 33 lakh crore has been disbursed to the citizens without the need for guarantees and this amount is unprecedented and surpasses any financial support extended to wealthy individuals collectively.
He expressed his trust in the nation’s talented youth who have utilised the funds effectively to generate employment and stimulate the economy.
Highlighting the remarkable confidence displayed by the government in expanding the scope of Mudra loans, which initially ranged from Rs 50,000 to Rs 5 lakh, to now reaching Rs 20 lakh, the prime minister noted that this expansion reflects the trust placed in the entrepreneurial spirit and capabilities of India’s citizens, which has strengthened through the successful implementation of the scheme.
The prime minister also assured the beneficiaries that the government would review the scheme and take steps to further improve it.
In the times to come, he said, the government will continue focusing on ensuring a robust ecosystem where every aspiring entrepreneur has access to credit thus giving him or her the confidence and a chance to grow.
Modi said that job creation through Mudra Yojana has significantly contributed to economic growth and the earnings of common citizens have increased, enabling them to improve their living standards and invest in education for their children.
Observing that the Mudra Yojana has brought in silent revolution, he said it has ushered in a significant shift in societal attitudes towards entrepreneurship. He underlined that the scheme has empowered women by not only offering financial assistance but also creating opportunities for them to lead and grow their businesses.
Speaking on this occasion, Finance Minister Nirmala Sitharaman said, “with over Rs.33.65 lakh crore sanctioned to more than 52 crore MUDRA loan accounts, the scheme has proved to be an important milestone in giving wings to the aspirations of crores of entrepreneurs, particularly those belonging to marginal sections of society.”
Since 2015, she said Rs 11.58 lakh crore worth of Mudra loans have been sanctioned to various marginalised communities belonging to Scheduled Castes, Scheduled Tribes and OBCs realising PM’s mantra of ‘Sabka Saath, Sabka Vikas, Sabka Vishwas and Sabka Prayaas’.
In line with the Budget 2024-25 announcement, the introduction of the Tarun-Plus category last year, with an increased loan limit of Rs 20 lakh, will further help thriving entrepreneurs expand and unlock their full potential, she added.
Minister of State (MoS) for Finance Pankaj Chaudhary said, the Mudra is one of the most significant initiatives not only in India but also globally, aimed at promoting entrepreneurship. Financial inclusion is one of the top priorities of the government, as it plays a vital role in achieving inclusive growth.
“It has created self-employment opportunities across the country, especially for marginalised sections of society, including Scheduled Castes/Scheduled Tribes, Other Backward Classes (50 per cent of loan beneficiaries), and women (68 per cent of loan beneficiaries).” MoS added.
Under the PMMY, collateral-free loans of up to Rs 20 lakh are extended by member lending institutions (MLIs) viz scheduled commercial banks, regional rural banks (RRBs), small finance banks (SFBs), non-banking financial companies (NBFCs), and microfinance institutions (MFIs), among others.
The loans are given for income-generating activities in the manufacturing, trading and services sectors and activities allied to agriculture.
The scheme was launched to encourage small businesses, and banks were asked to provide collateral-free loans up to Rs 20 lakh under three categories — Shishu (up to Rs 50,000), Kishore (between Rs 50,000 and Rs 5 lakh) and Tarun (Rs 20 lakh).
