Disbursements to the tune of Rs 75,000 crore has been made under the Pradhan Mantri MUDRA Yojana till December last year; out of a total target of Rs 122,000 crore, Jiji Mammen, CEO, MUDRA Bank, said.
The Micro Units Developments Refinance Agency (MUDRA) scheme that looks at refinancing loans up to Rs 10 lakh was launched in April 2015.
According to Mammen, disbursal has been made to around 1.73 crore beneficiaries; of which, 50 per cent are new units; while the remaining half has been for expansion towards existing ones.
“Against a target of Rs 122,000 crore for this fiscal, we have disbursed Rs 75,000 crore in the first nine months of the year,” he told reporters on the sidelines of the Eastern India Microfinance Summit 2016.
Loans under the scheme have been bracketed in three categories: Shishu loans are up to Rs 50,000; Kishor loans are between Rs 50,001 and Rs 5 lakh; and Tarun loans of Rs 5-10 lakh. Sishu loans are for small businesses, while Kishor and Tarun ones are for larger ones.
Refinance
Till December, the agency has refinanced around Rs 1,500 crore from its corpus of Rs 20,000 crore.
Of this around Rs 800 crore has been for the banks, that include mostly public sector entities like Bank of Maharashtra, Indian Overseas Bank and the State Bank of Travancore, Mammen said. The remaining amount includes microfinance institutions.
To make the MUDRA scheme more attractive, the Centre has also cleared the setting up of a Rs 3,000 crore Credit Guarantee Fund for these loans. This will provide insurance against default on MUDRA loans to a maximum of 50 per cent.