Mudra Loan News

Banks will have to be a lot friendly while serving customers, says Finance Minister

Union Finance Minister Nirmala Sitharaman advised banks to be friendlier while serving their customers. She stated that Prime Minister Narendra Modi has always encouraged people to avail of loan facilities as MUDRA and SVANIDHI schemes ensure collateral-free loans. 

The chairman of SBI, Dinesh Khara, discussed that the credit guarantee yojanas are getting popular among the startups that need equity and ascertained that the banks are keen to back them and trying everything to enhance their servicing quality. Credible cash flow will make the lending process easy for MSMEs. Balance sheets of the banks and the corporate sector have shown impressive progress, revealed Revenue Secretary Tarun Bajaj, adding that the government will appreciate an economy-friendly high growth rate in the upcoming years. Many other finance-related issues, including firming the Production Linked Incentive Schemes and domestic manufacturing, popped up during the interaction.

Updated Date: 14-03-2022

Emergency Credit Line Guarantee Scheme

Mukhtar Ahmad, a resident of Srinagar, saw the lights of new hope after introducing the Emergency Credit Line Guarantee Scheme (ECLGS) in May 2020 by the Union Finance Ministry. In 2019 his PoP manufacturing business fell after suffering huge losses; he couldn’t even pay the loan installments timely. Then taking advantage of this scheme helped him recover from such a horrible situation. He stated that all his worries went away after he entered into the scheme; it became a saviour for small and medium-sized businesses. ECGLS gave a big push to the pandemic-affected economy of India. Nirmala Sitharaman, Union Finance Minister, stated that they postponed the time of its abolishment to March 2023. The stats published after its introduction point out the differences between then and now. The business owners got immensely benefitted through this scheme.

Updated Date: 25-02-2022

Over 29.55 Crores loans sanctioned under the Pradhan Mantri Mudra Yojana (PMMY)

Union Minister of State for Finance, Dr Bhagwat Kisanrao Karad in recent meeting informed the Lok Sabha that over 29.55 crore loans have been sanctioned under the PMMY scheme since its inauguration in 2015 and the loans have amounted up to around INR 15.52 lakhs crores. Under the PMMY scheme the companies that fall under the Micro Small and Medium Enterprises sector can avail credit upto INR 10 lakhs for their activities by the Member Lending Institutions (MLI) of the scheme.

Out of the 29.55 Crore loans, around 6.8 Crore loans amounting to INR 5.2 lakh crores has been provided to startup companies and new entrepreneurs as these companies require a base fund to handle even its basic operating costs and the loans under the Pradhan Mantri Mudra Yojana (PMMY) and Stand-Up India Scheme (SUPI) which are implemented by the Department of Financial Services provide them the required boost they need to sustain their businesses.

Updated Date: 17-08-2021

Mudra loans: Around 87% of the loan amount was sanctioned in first quarter of FY22

Pradhan Mantri Mudra Yojana (PMMY), the scheme PM Modi launched in 2015, lays emphasis on Entrepreneurship and self-employment. Under this scheme around 87 percent of the total loan amount that was sanctioned in the first three months of the financial year (FY) 2021-22 has been disbursed. In the period from April 1 to July 9 of 2021a total of 76,69,969 applications were received involving Rs.44225.74 crores of loan amount. Out of this, a sum of Rs 38668.03 crores has been disbursed in the period from April 1 to July 9.  Mukesh Mohan Gupta, President of Chamber of Indian Micro, Small & Medium Enterprises (CIMSME) told Financial Express Online that lthough people were skeptical in starting new business during the lockdown period, yet a considerable amount of loans were sanctioned to Micro Entrepreneurs.

Updated Date: 16-07-2021

Fraud in the name of PMMY

This is a real story of how a man of Mumbai, was duped of Rs.55,000 when he fell prey to a cyber fraudster. On 15th of March, a person called Priya Mishra rang Pramod Jadhav.  She told him that her department (PMMY) has started a loan distribution scheme between Rs.50,000 to Rs. 20,00,000 exclusively for women. Initially, Priya asked Pramod to pay Rs.1000 as processing fees for the loan and he was also asked to submit the Aadhar Card and Pan Card of his wife which he did. The very next day Priya asked him to pay the insurance charges of Rs.18,150 and then demanded Rs. 36,200 as loan approval fees.

Jadhav was then asked to pay 6% of the loan amount as GST that was equal to Rs. 1.2 lakh. At that point Pramod refused to pay more money and asked her to take that money from the loan amount. When Priya denied, Pramod demanded his money back from her.  Since then she stopped talking to him. Sensing something fishy Jadhav wrote to the Prime Minister’s office. A few days later they clarified that it was a fraud. Jadhav then lodged a complaint in the Agripada police station.

Updated Date: 27-06-2021