PM Modi says Rs 50,000 crore loans offered so far

PM Modi says Rs 50,000 crore loans offered so far 

As per Government records, near around Rs. 50,000 crore have been spent in providing loans under the new Pradhan Mantri Mudra Yojana (PMMY) or widely known as MUDRA loan Yojana. As per the MUDRA scheme, the micro industries, small scale factories and other entrepreneurs will be given loans for their growth of the business. These micro units were having a hard time to keep pace with the running market and were struggling to keep their way.

They did not have a financial support from most of the banks and other financial institutions. The entrepreneurs were unable to stand up their small business as they did not have the basic financial strength or support. So the Govt. of India had launched the MUDRA scheme to provide full financial support to those micro units.

According to the scheme, the Govt. will provide loans ranging from Rs. 50,000 to Rs. 10 lakh. These loans will be given according to the nature of business and need. The loan will be given in three categories- Sishu, Kishor and Tarun. The loans will be given in form of MUDRA credit cards with its own credit limit assigned. The beneficiaries can purchase machineries or useful resources for setting up or expanding their business.

The reason behind the success of Pradhan Mantri Mudra Yojana is that the loans which are taken will not attract high interest rates and will be given at subsidized rates. The payback period is also extended so that the beneficiaries can easily repay the loan amount. Another reason is that the entire process of Mudra loan has been kept simple and user friendly. One who wants to take a loan under the Mudra scheme can visit any commercial bank that participating in the scheme, rural banks, co-operative banks, etc. and fill up the Mudra loan form and provide the necessary supporting documents. The loan sanction and disbursement is also quick.

As per Govt. records, more than 80,000 entrepreneurs has received loans under this scheme. About fifty thousand crore is spent in giving Mudra loans to the beneficiaries. The people, belonging to backward classes in India have been benefited as they have found a new financial support. Those backward classes who never entered the banks are having savings accounts, loan accounts and are living their life in dignity. The Govt. is hopeful to get more participation in the scheme in the upcoming months.

Other Mudra Articles

• Interest Rate
• Mudra Scheme in SBI
• Documents Required