The government targets Rs 1.80 lakh crore loan disbursal to MSMEs under the Prime Minister Mudra Yojana for 2016-17. Explaining the progress of the scheme, Minister of State for Finance Jayant Sinha revealed that the actual for the previous year was Rs 1.2 lakh crore.
Around 3.5 crore beneficiaries have availed funds under the scheme.
The MUDRA Shceme that stands for Micro Units Development and Refinance Agency became the chief lending channels for small businesses who takes loans below Rs 10 lakh. Loans to the enterprises are divided into Shisu, Kishor and Tarun based on the loan limits. Shishu loans will be upto Rs 50000, Kishor from Rs 50000 to Rs five lakh and Tarun laons ranges from Rs five lakh to Rs 10 lakh.
Loans above Rs 10 lakh to MSMEs are provided by SIDBI.
Besides loans technical assistance are also provided to small enterprises. The quantum of loan disbursal to small units is sizable under the Mundra Yojnana compared to the previous SIDBI sponsored MSME lending schemes.
So far, the scheme has emerged as the largest enterprise development programme in the country in terms of number of units financed.