New Delhi: Union Finance Minister Nirmala Sitharaman on Tuesday said it is heartening to note that nearly 68 per cent of the total Pradhan Mantri MUDRA Yojana (PMMY) loan accounts have been sanctioned to women, becoming a tool for empowerment and enabling them to contribute to national economic growth and also inspiring the next generation of female entrepreneurs.
Hailing the scheme’s impact, the Finance Minister said that in line with the Budget 2024-25 announcement, “the introduction of the Tarun-Plus category last year, with an increased loan limit of Rs 20 lakh, will further help thriving entrepreneurs expand and unlock their full potential.”
The PMMY, launched on April 8, 2015, by Prime Minister Narendra Modi, is celebrating 10 glorious years of empowering small and micro-entrepreneurs across India.
Aimed at fostering financial inclusion, PMMY provides easy, collateral-free loans up to Rs 10 lakh for non-corporate and non-farm income-generating activities.
To strengthen support for aspiring entrepreneurs, the Finance Minister announced an increase in the loan limit to Rs 20 lakh during the Union Budget 2024-25.
The newly announced loan category, Tarun Plus, is designed specifically for those who have previously availed and successfully repaid loans under the Tarun category, allowing them to access funding between Rs 10 lakh and Rs 20 lakh.
Additionally, the Credit Guarantee Fund for Micro Units (CGFMU) will now provide guarantee coverage for these enhanced loans, further reinforcing the government’s commitment to nurturing a robust entrepreneurial ecosystem in the country.
“With over Rs 33.65 lakh crore sanctioned to more than 52 crore MUDRA loan accounts, the scheme has proved to be an important milestone in giving wings to the aspirations of crores of entrepreneurs, particularly those belonging to marginalised sections of society,” said FM Sitharaman.
“Since 2015, Rs 11.58 lakh crore worth of MUDRA loans have been sanctioned to various marginalised communities belonging to Scheduled Castes, Scheduled Tribes and OBCs, realising PM’s mantra of ‘Sabka Saath, Sabka Vikas, Sabka Vishwas and Sabka Prayaas,” she mentioned.
According to Union Minister of State (MoS) for Finance, Pankaj Chaudhary, the PMMY is one of the most significant initiatives not only in India but also globally, aimed at promoting entrepreneurship.
“Financial inclusion is one of the top priorities of the government, as it plays a vital role in achieving inclusive growth. PMMY provides a platform for small entrepreneurs to access loan support from banks, NBFCs, and MFIs,” said Chaudhary.
While launching the scheme, PM Modi stated that supporting India’s small entrepreneurs is one of the most effective ways to help the Indian economy grow and prosper.
The scheme has provided crucial financial assistance to a vast number of entrepreneurs, helping them set up and operate their businesses and instilling a sense of financial security in them.
(IANS)
