Mudra Yojana is for the poor and underprivileged: Venkaiah Naidu

Stating that the Mudra Yojana is not for the rich people, Parliamentary Affairs Minister M Venkaiah Naidu while addressing the Parliament today said “While trying to create wealth, while trying to invite investment, at the same time, you have to take care of the vulnerable sections.”

“What is Mudra Yojana? Mudra yojana is not for the rich people. Banks were giving money earlier to the rich people. It is not wrong because money has to come back also. But poor people are more sincere in repaying the loan,” he said.

Citing example from his experience, he said, “I can tell you out of my experience. In Andhra Pradesh and in Telangana, ninety nine percent is the repayment capacity of the self-help groups.”

Naidu said, “It is not exaggeration to say that some of our friends, if they forget political differences, will endorse it that in certain markets people give the loan for one thousand in the morning but they will give only nine hundred as cash. The loan is for one thousand rupees. By evening, after you sell your products, you have to pay one thousand rupees. That means the seller has to pay one hundred rupees as interest for one day. That is the situation,” Naidu told the Parliament.

“That is the exploitation going on. It is not because of any party but it is because of the system. So, keeping that in mind, the Prime Minister came with this novel idea of Mudra Bank Yojana,’ Naidu said adding that “we should see to it that all of us participate in that and see to it that the Mudra Bank Yojana reaches the people.”