'More than 6.80 Crore Loans of Worth Rs. 5.20 Lakh Crore Extended to New Entrepreneurs'

Entrepreneurs availed over 29.55 crore loans of Rs. 15.52 lakh crore under Pradhan Mantri Mudra Yojana (PMMY) since 2015.

SMEStreet Edit Desk
Aug 03, 2021 04:00 IST
Dr Bhagwat Kishnrao Karad, MoS Finance, Banking Frauds, SMEStreet

Pradhan Mantri Mudra Yojana (PMMY) and Stand-Up India Scheme (SUPI) are the flagship Schemes implemented by the Department of Financial Services (DFS) for extending loans to entrepreneurs. This was stated by Union Minister of State for Finance Dr Bhagwat Kisanrao Karad in a written reply to a question in Lok Sabha.

Under PMMY, institutional credit up to Rs. 10 lakh is provided by Member Lending Institutions (MLIs) for entrepreneurial activities to micro/small business units, including for new enterprises, which help in creating income-generating activities in sectors such as manufacturing, trading, services and activities allied to agriculture. Government allocates annual targets regarding the amount to be sanctioned under PMMY to MLIs. For the current financial year (FY), a target of sanction of Rs. 3.00 lakh crore has been fixed for MLIs.

The Minister stated that as per data uploaded by Member Lending Institutions (MLIs) on the Mudra portal, as on 31.03.2021, over 29.55 crore loans amounting to Rs. 15.52 lakh crore has been sanctioned under PMMY across the country, since the inception of the Scheme in April 2015. Of these, more than 6.80 crore loans amounting to Rs. 5.20 lakh crore has been extended to New Entrepreneurs/Accounts.

Giving details of the other flagship scheme, Stand-Up India (SUPI), the Minister said that it facilitates bank loans between Rs.10 lakh and Rs.1 crore to at least one Scheduled Caste/ Scheduled Tribe borrower and at least one Woman borrower per bank branch of Scheduled Commercial Banks for setting up greenfield enterprises in manufacturing trading or services sector and activities allied to agriculture.

The Minister stated that bank-wise (Public Sector Banks) details regarding the number of loans sanctioned to new entrepreneurs during each of the last three years and current year in respect of PMMY and SUPI are placed at Annexure-I    and Annexure-II respectively.

The Minister also stated that the Government takes measures on complaints received from time to time in respect of the implementation of PMMY & SUPI, including turning down of loan applications or non-release of funds, are redressed in coordination with the respective banks.

#Bhagwat Kisanrao Karad