The All India Radio News features a unique program, AIR Spotlight, which hosts discussions on various crucial topics. These discussions involve industry experts and can be incredibly beneficial for those preparing for the IAS exam.
Today, our focus is on the 8 years of successful implementation of the PM MUDRA Scheme.
Participants:
- Puneet Jain, a renowned Economic Analyst
- Rajesh Lekh, an esteemed AIR Correspondent
Background: The PM MUDRA Yojana (PMMY) has reached its 8-year milestone. This scheme was initiated to offer a hassle-free, collateral-free credit access to the micro-enterprises of the country.
About PM MUDRA Yojana (PMMY):
The Pradhan Mantri MUDRA Yojana, launched on 8th April 2015, is a government initiative aimed at facilitating easy, collateral-free micro-credit of upto Rs 10 lakh to non-corporate, non-farm, small and micro-entrepreneurs. It is a symbol of social justice and embodies the essence of Sabka Saath Sabka Vikas.
- MUDRA, an acronym for Micro Units Development & Refinance Agency Ltd., is a financial institution established by the Government.
- Till now, Rs. 23.2 lakh crore has been sanctioned to over 40.82 crore beneficiaries under the Mudra Yojana, which was launched eight years ago to fund the unfunded.
- Around 68% of the 40.82 crore accounts that received these loans are owned by women, and 51% belong to entrepreneurs from Scheduled Tribes , Scheduled Castes, and other backward categories.
- The loans under PMMY are provided by Member Lending Institutions (MLI), which include Banks, Non-Banking Financial Companies (NBFC), Micro-Finance Institutions (MFIs), and other Financial Intermediaries. The borrower can approach any of these financial institutions or apply online through the Udyami Mitra portal.
Learn more about PM Mudra Yojana in the linked article.
Categories under PM MUDRA Yojana:
The PM MUDRA Yojana is divided into three categories based on the growth stage and funding needs of the beneficiary micro-unit.
- Shishu: Covers loans upto Rs 50,000.
- Kishore: Covers loans above Rs 50,000 and up to Rs 5.0 lakh.
- Tarun: Covers loans above Rs 5.0 lakh and up to Rs 10.0 Lakh.
Shishu category accounts for 83% of the total loans, Kishore accounts for 15%, and the remaining 2% is covered by Tarun.
Significance of PMMY:
The PMMY is a comprehensive scheme that aims to extend the benefits of economic development to every individual in the country, with a special focus on empowering women and marginalized entrepreneurs.
- Financial inclusion, which is based on three pillars - banking the unbanked, securing the unsecured, and funding the unfunded.
- The scheme has been instrumental in funding the unfunded, thus ensuring a life of dignity and prosperity for countless Indians.
- This scheme is specifically targeted towards benefiting people living in small villages/towns with no access to formal financial infrastructure.
- The Pradhan Mantri MUDRA Yojana encourages youth to embark on their entrepreneurial journey by providing collateral-free loans.
- The PMMY has played a significant role in generating large-scale employment opportunities at the grassroots level, thereby boosting the Indian economy.
- Loans under PMMY are provided for both term loan and working capital components of financing for income-generating activities in manufacturing, trading, and service sectors, including activities allied to agriculture such as poultry, dairy, beekeeping, etc.
- The PM MUDRA Yojana operates in a completely digital environment where a person can apply online, and the money is disbursed online.
Conclusion: The Pradhan Mantri MUDRA Yojana has indeed been successful in fulfilling the dreams and aspirations of millions of Indians, instilling in them a sense of self-worth and independence.
Find more insightful AIR Spotlight articles in the link.
