Credit Campaign to give Push to Micro Units Development and Refinance Agency (Mudra) Loan Under PMMY

The Public Sector Banks (PSBs), Regional Rural Banks (RRBs) have started mega credit campaign across the country to give a push to the Pradhan Mantri Mudra Yojana for the benefit of weaker sections to become self-sufficient.

A credit campaign was organized from September 25 to October 2, 2015. Target fixed by the Government of India for the current year for Micro Units Development and Refinance Agency (MUDRA) loan under Pradhan Mantri Mudra Yojana is ₹ 1,22,188 crore (Rs. 70,000 crore was allotted to Public Sector Banks, ₹ 30,000 crore to Private Section Banks/Foreign Banks and ₹ 22,188 crore to Regional Rural Banks).

Details of number of accounts and disbursement made from April 8 to November 27, 2015 are as follows:

As per Centralized Public Grievance Redressal and Monitoring System (CPGRAMS) Database, 282 public grievances have been received concerning PMMY. Out of the total, 17 grievances have been redressed and 265 are being taken up for redressal with the concerned banks.

Mudra Bank has received 237 grievances/queries. Out of these 27 pertain to security and 8 are with respect to restriction of loans within ₹ 50,000.

The information regarding rejection of loan applications, bank wise and state wise, is not centrally maintained.

The Government has taken several steps to extend credit to aspiring entrepreneurs in addition to PMMY which inter-alia include: 

• Setting up India Aspiration Fund with a corpus of ₹ 2000 crore as a fund-of-funds to pick-up equity start-ups.
• Setting up SIDBI Make in India Loan for Enterprises (SMILE) with a corpus of ₹ 10,000 crore to provide soft term loans and loans in the nature of quasi-equity to MSMEs to meet debt-to-equity norms and pursue growth opportunities in existing MSMEs.
• Establishing Small B Innovation branches to ‘assist/venture funded’ early stage enterprises by way of venture debt/working capital.

This was stated by Shri Jayant Sinha, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha.