MUDRA Yojana, implemented early this year to help small business units, will soon get a leg-up from Prime Minister Narendra Modi, who is scheduled to launch a mega credit campaign to promote the initiative. He will launch the state-level campaign in Dumka, Jharkhand, on October 2.
In a bid to promote the Pradhan Mantri MUDRA Yojana (PMMY), launched in April, the department of financial services will organise mega campaigns across all districts beginning September 25 to October 2. During the campaign the government aims at disbursing 25 lakh Shishu loans and the department has set a target of 25 Shishu loans per bank branch.
The PMMY provides loans between Rs 50,000-10 lakh to small entrepreneurs. The Micro Units Development and Refinance Agency Ltd (MUDRA) focuses on the 5.75 crore self-employed who use funds of
Rs 11 lakh crore and provide jobs to 12 crore people.
So far, as per the government data, against a target of
Rs 1,22,118 crore for fiscal 2015-16, Rs 22,572 crore has been disbursed as on September 15 to 33.90 lakh borrowers. The loans are available under the categories of Shishu, Kishor and Tarun to signify the stage of growth and funding needs of the beneficiary micro unit or entrepreneur. Under Shishu loan, Rs 3,940 crore have been disbursed to 26.90 lakh borrowers, Kishor loan Rs 11,742 crore to 5.99 lakh borrowers and Tarun loan worth Rs 6,889 crore to one 1 lakh borrowers. Shishu category covers loans up to Rs 50,000 while Kishor covers above Rs 50,000 and up to Rs 5 lakh. Tarun category provides loans of above Rs 5 lakh and up to Rs 10 lakh. In lending, priority has to be given to SCs/STs enterprises.
“An officer from financial services department has been assigned to each state to monitor distribution of targets beneficiary selection progress, simplicity in processing and ensuring that actual disbursement takes place at mega campaign. Toll free numbers, simplified form availability, dedicated MUDRA officers in banks, emphasis on quick processing time will be adhered to for making the campaign a success. Trainees of different training institution like MSME institutes, Jan Shikshan Sanstha, has been roped in for widening beneficiary selection,” an official said.
MUDRA refinance is available only for the loan issued at base rate by commercial banks. Banks have been advised not to charge margin money and processing fee for Shishu loan while rate of interest may vary from bank to bank but to not exceed 12 per cent per annum.
The repayment period varies from 3-5 years according to project requirement and loans are given as term loan or working capital loan or a mix of term loan and working capital loan.