The Finance Ministry of India recently announced that it has tied-up with around 40 of the largest job creators in the Indian market to extend funds to small entrepreneurs under the Pradhan Mantri MUDRA Yojana (PMMY). In order to identify individuals who are eligible for funding, the Finance Ministry will be organising an event on 23 May 2018 in Mumbai, India.
During the event, the 40 firms selected by the Finance Ministry will identify eligible people and underwrite them. Post this, the Finance Ministry will extend a loan to the eligible individuals under the PMMY scheme.
By way of this move, the Finance Ministry hopes to provide loans to individuals who may require funding but haven’t approached banks for the same yet. Some of the firms that have tied-up with the Finance Ministry for this initiative include Flipkart, Patanjali, Swiggy, Amul, Make My Trip, Edelweiss, Zomato, Amazon, Muthoot, Meru Cab, Ola, Carz on Rent, Habib Salon, Big Basket, etc.
Senior officials from various banks including ICICI Bank, State Bank of India, Bank of Baroda, and Punjab National Bank, and MDs, CEOs, and CFOs from the Railway Board and various oil companies will also be participating in the event.
The Prime Minister of India launched the Pradhan Mantri MUDRA Yojana (PMMY) scheme on 8 April 2015 in an effort to provide loans up to Rs.10 lakh to non-farm small/micro and non-corporate enterprises. Under this scheme, prospective borrowers can approach either co-operative banks, commercial banks, regional rural banks (RRBs), small finance banks, non-banking financial companies, or micro finance institutions (MFIs) for a loan.
During the last financial year, the Government of India extended a sum of Rs.2.53 lakh crore as loans under the MUDRA scheme. Similarly, over the past 3 years, the government has extended a total of Rs.5.73 lakh crore as funding under this scheme.