Mudra Scheme: Under the scheme, small loans worth Rs 50,000 to Rs 10 lakh are given to small businesses and entrepreneurs without any bank guarantee.
Mudra Loans: In a big boost to small and first time businesses, the NDA government is all set to achieve the target of giving unsecured loans to entrepreneurs under Prime Minister Narendra Modi’s initiative Mudra scheme. This will be the third time in a row when the government will achieve the target under Mudra scheme, said a senior official in the department of financial services.
“The final data is being compiled. The information of Mudra loans given by some NBFCs is in the process of being compilation, thereafter the data will be released to the public,” said a senior official looking after the Mudra scheme in Department of Financial Services (DFS) under the Ministry of Finance.
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The Union Government has set an ambitious target of giving loans worth Rs 3 lakh crore in FY 2018-19 under the scheme, an increase of nearly 23% over the previous fiscal. The Union Government has crossed the target of Mudra loans in the previous two financial years FY 2016-17 and FY 2017-18 as well.
According to the latest data available on the official site, Mudra loans worth Rs 2.82 lakh crore have been sanctioned till March 22, 2019. However, a senior official in the department of financial services confirmed to the Financial Express Online that the target of sanctioning Mudra loands worth Rs 3 lakh crore has been achieved.
“We have already crossed the target. In the next week or so we will officially release the data,” the official told Financial Express Online.
It means that the banks and NBFCs were able to sanction Mudra loans worth Rs 18,000 crore in the last 8 days of the financial year 2018-19. It translates into sanction of Mudra loans worth Rs 4,500 crore per day during the last 4 working days in the month of March as against the average rate of sanction of Mudra loans worth Rs 970 crore per working day throughout the rest of the year.
Nearly one year after assuming the charge, Prime Minister Narendra Modi had launched Mudra scheme in April 2015 to provide loans up to Rs 10 lakh to small business, entrepreneurs and small units without any bank guarantee. The scheme was aimed at converting youth into entrepreneurs by helping them to access capital with minimal documentation and with no bank guarantee. In his speeches, Prime Minister Narendra Modi has often referred to Mudra scheme as a game changer in generating employment.
In 2016-17, Modi government had set the target of giving loans worth Rs 1.80 lakh crore under the Mudra scheme, and the total amount of sanctioned loans in that financial year was little over Rs 1.8 lakh crore. Next year, the government increased the target by more than one third to Rs 2.44 lakh crore.
Mudra loans worth more than Rs 2.53 lakh crore were sanctioned in FY 2017-18, an increase of nearly 4% over the target. The banks were also able to disburse loans worth Rs 2.46 lakh crore, an increase of more than Rs 2,000 crore over the target.
Though the government was able to achieve the target of sanctioning Mudra loans worth Rs 1.8 lakh crore in the financial year 2016-17, however, the actual disbursal was nearly Rs 5,000 crore less than the target.