Latest on MUDRA Loans Scheme

IAS Prelims 2023

Loans under Pradhan Mantri Mudra Yojana (PMMY) Scheme have been extended by banks, Non Banking Financial Companies (NBFCs) and Micro Finance Institutions (MFIs) to small/micro business enterprises with the objective of ‘Funding the unfunded’ through institutional finance by providing loans upto 10 lakh for manufacturing, processing, trading, services and activities allied to agriculture.

Government has been receiving complaints with regard to implementation of PMMY from time to time including difficulties in obtaining loans. These are redressed in coordination with the respective Banks.

Central Public Grievance Redress and Monitoring System (CPGRAMS) has received 8352 complaints against various banks in respect of the Scheme. Of these, 8194 complaints have been forwarded to respective Banks for redressal.

The Government has taken various steps towards effective implementation of the scheme. These, inter alia, include intensive publicity campaigns, simplification of application form, Credit Guarantee Scheme, nomination of Mudra Nodal Officer etc.