PMMY: Finance Minister Hails Financial Inclusion, Rising Women Entrepreneurship Across India
Union Finance Minister Nirmala Sitharaman stated that it is encouraging to observe that almost 68 per cent of the overall Pradhan Mantri MUDRA Yojana (PMMY) loan accounts have been approved to women, becoming a medium of empowerment and allowing them to contribute to the national economic development and also influencing the next generation of women entrepreneurs.
Welcoming the scheme's success, the Finance Minister stated that as per the Budget 2024-25 announcement, the launch of the Tarun-Plus category last year, with a raised loan limit of Rs 20 lakh, will further assist successful entrepreneurs to grow and realize their full potential.
The PMMY, which was inaugurated on April 8, 2015, by Prime Minister Narendra Modi, is marking 10 glorious years of empowering small and micro-entrepreneurs throughout India. Focused on encouraging financial inclusion, PMMY offers simple, collateral-free loans up to Rs 10 lakh for non-corporate and non-farm income-generating ventures.
In a move to consolidate backing for prospective entrepreneurs, the Finance Minister raised the loan ceiling to Rs 20 lakh in the Union Budget 2024-25. The new loan segment announced, Tarun Plus, is particularly tailored for borrowers who have taken loans under the Tarun category in the past and repaid them successfully so that they can receive funds ranging between Rs 10 lakh and Rs 20 lakh.
Also, the Credit Guarantee Fund for Micro Units (CGFMU) will now offer guarantee cover for these improved loans, further cementing the government's support for developing a strong entrepreneurial ecosystem in the nation.
With more than Rs 33.65 lakh crore sanctioned to over 52 crore MUDRA loan accounts, the scheme has been a significant milestone in providing wings to the dreams of crores of entrepreneurs, especially those from marginalised sections of society, stated FM Sitharaman.
"Since 2015, Rs 11.58 lakh crore of MUDRA loans have been sanctioned to different marginalised communities of marginalized sections of Scheduled Castes, Scheduled Tribes and OBCs, making PM's mantra of 'Sabka Saath, Sabka Vikas, Sabka Vishwas and Sabka Prayaas," she said. The PMMY is one of the most crucial efforts not just in India but in the whole world, to encourage entrepreneurship, according to Union Minister of State (MoS) for Finance, Pankaj Chaudhary.
Financial inclusion is one of the priority areas of the government because it is essential to achieve inclusive growth. PMMY is a platform for small entrepreneurs to get the support of bank loans, NBFCs, and MFIs, said Chaudhary. During the launch of the scheme, PM Modi said that supporting India's small entrepreneurs is one of the best means of enabling the Indian economy to grow and flourish. The scheme has provided crucial financial assistance to a vast number of entrepreneurs, helping them set up and operate their businesses and instilling a sense of financial security in them.
