The bank has distributed about 40,000 MUDRA cards, which addresses short term credit requirements of small entrepreneurs
Jiji Mammen
Kochi: The MUDRA (Micro Units Development and Refinance Agency) bank, set up by the Central government to channelise credit to the small and micro enterprises in the country, is planning to distribute Rs 1,22,000 crore this financial year, its chief executive officer Jiji Mammen said.
“The public sector banks will distribute Rs 70,000 crore, private sector banks Rs 30,000 crore and Gramin banks Rs 22,500 crore,” Mr Mammen said.
About 2 crore people will be able to get credit from the banks due to this initiative. In the last four months, the bank has distributed about Rs 24,000 crore to 40 lakh-odd people.
The bank has distributed about 40,000 MUDRA cards, which addresses short term credit requirements of small entrepreneurs. “The young entrepreneurs and startups will find this a helpful option,” he said.
“All entrepreneurs who are eligible for the loans can approach any of the banks and apply for MUDRA loans. We have directed all branches of all banks to open 25 MUDRA accounts each to ensure that the targets are met.” Almost all banks now offer MUDRA cards, he said.
The bank is focusing on Shishu loans (up to Rs 50,000) to plug the credit gap of a large section of people. The bank is aiming at distributing Rs 5,000 crore to 25 lakh people during a month-long campaign which ends on October 2.
Mr Mammen said MUDRA will seek to make banking accessible to a large unserviced sectors. The National Sample Survey Organisation’s data shows that there are about 5.5 crore micro and small enterprises in India but only 5 per cent of them have access to bank credit.
“Our expectation is that a specialised agency which monitors loans would add pressure on banks to reach out to more areas,” he said.
MUDRA bank is setting up a a Rs 3,000 crore credit guarantee fund, which will offer a cushion for the banks.
( Source : deccan chronicle )
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