Loans given to 31.80 lakh applicants under MUDRA: Hansraj Ahir

MUMBAI: Union minister Hansraj Ahir today said that under Pradhan Mantri MUDRA Yojana (PMMY) soft loans amounting to Rs 20,395 crore have been disbursed, so far, to a total of 31.80 lakh applicants across the country.

Ahir, an MP from Chandrapur in Maharashtra and the Minister of State for Chemicals and Fertilisers, who has been tasked to monitor the implementation of the scheme in the state admitted that the nationalised banks have been lax in clearing applications and disbursal of loans.

"The target of the scheme is to provide soft loans ranging between minimum Rs 10,000 to Rs 10 lakhs for unemployed youth, street hawkers, cottage industries, small scale industries, household industries to set up businesses," he told reporters here.

He further said that the applicants have to pay a very nominal interest of just Rs 1 per month depending upon the loan amount.

"The Small Industries Development Bank of India (SIDBI) will be the nodal bank, besides which 21 nationalised banks (excluding SBI) and 9 private banks have been authorised to implement the scheme," he said.

Ahir said that the loans are available under the categories of Shishu, Kishor and Tarun to signify the stage of growth and funding needs of the beneficiary micro unit or entrepreneur.

Shishu category covers loans up to Rs 50,000 while Kishor covers above Rs 50,000 and up to Rs 5 lakh. Tarun category provides loans of above Rs 5 lakh and up to Rs 10 lakh.

"25 lakh applicants have been given minimum loan of upto Rs 50,000. What we have seen is that while large Industries give employment to around 1.25 crore people, Small and Micro Industries employ around 12 crore people.

"We want people who have the skill to benefit from the scheme," Ahir said, adding that no security is needed to avail the benefits of the scheme.