(MENAFN- KNN India) The Prime Minister Narendra Modi launched the Micro Units Development & Refinance Agency Ltd (MUDRA) to cater to the financial needs of over fifty million self-employed people.
'Mudra will build on the only capital that fifty million landless self-employed people have: trust', Modi said.
The Initial products launched under the Pradhan Mantri Mudra Youjna are in three categories: Shishu- covering loan size up to Rs. 50,000; Kishore loan sizes from Rs. 50,000 to Rs. 5 lac and Tarun for loan sizes from Rs. 5 lac to Rs. 10 lac. At least 60% of the loans has been earmarked for loans sizes up to Rs. 50,000.
Stating that 'Mudra will fund the unfunded', Finance Minister explained that 'Mudra will re-finance a range of financial intermediaries and besides Finance Institutions (MFIs) would leverage presence of institutions such as Self-help groups, Banks, Regional Rural Banks (RRBs), Cooperative Banks among others who in turn would fund the micro entrepreneurs'.
To begin with Mudra is begin functioning like a subsidiary of SIDBI and will regulate and re-finance the MFIs.
Besides re-financing, Mudra is also tasked to develop and capacitate supporting institutions and products.
The initial corpus of the Mudra comprising of Rs. 20,000 crore will be filled through the short-fall of priority sector lending.
Prime Minister also said that merely '1 crore 25 lakh people find employment in large industries, whereas small enterprises employ 12 crore people in the country'.
'While there are a number of facilities provided for the large industries in India, there is a need to focus on these 5 crore 75 lakh self-employed people who use funds of Rs 11 lakh crore, with an average per unit debt of merely Rs 17,000 to employ 12 crore Indians', he said.
Also present during the occasion were the Union Minister of Finance, Arun Jaitley, the Union Minister of State for Finance, Jayant Sinha, and the Governor of Reserve Bank of India, Shri Raghuram Rajan. (KNN/AB)
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