In order to facilitate easy loans to small entrepreneurs under the Pradhan Mantri Mudra Yojana (PMMY), the finance ministry (FinMin) has tied up with upto 40 firms including over two dozen e-commerce firms, which include major tech startups like Amazon, Flipkart, Ola, Uber, MakeMyTrip, Zomato, Big Basket and Swiggy. Other non-tech firms with which FinMin has joined hands also include Amul and Patanjali, which are big job creators.
“We have identified about 40 companies as biggest job creators. These companies will identify people who need loans under Mudra Yojana, underwrite them and we will extend loans under the scheme,” Financial Services Secretary Rajiv Kumar told PTI.
“People who need money under the Mudra scheme approach the banks, but with this initiative the financial services department is trying to reach out to those who need loans for their businesses but have not approached the banks,” he added.
PMMY is a flagship scheme of the government to provide loans of up to Rs 10 lakh to small entrepreneurs. The loans are being given by banks, small finance banks, non-banking financial companies (NBFCs) and micro finance institutions.
Rajiv Kumar further said, “There are companies like Ola, Flipkart, Uber, dabbawalas, cable operators, Zomato, which have several small entrepreneurs as partners who require loans. We want to extend support to them under the Mudra scheme.”
“The bank looks for good entrepreneurs, the companies look for supporting their partners and we are just trying to connect these dots,” he added.
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Under PMMY, loans are given by banks and MFIs under three categories — Shishu (loans up to ₹50,000); Kishor (loans above ₹50,000 and up to ₹5 lakh); and Tarun (loans above ₹5 lakh and up to ₹10 lakh).
The basic difference between a regular business Loan and a loan under Mudra scheme is that Mudra is collateral free loan, which means one can get a loan upto Rs 10 lakhs without giving any security. Besides, one can get a mudra loan even for new businesses and more importantly Mudra focuses on small businesses and micro-entrepreneurs, who are outside the service area of regular banks.
Last fiscal the government has extended Rs 2.53 lakh crore credit under the Mudra Yojana, while Rs 5.73 lakh crore has been extended in last 3 years.
Via – DNAIndia | Top Image – ManoramaOnline.com
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