Pradhan asks banks to increase credit under Mudra Scheme

PTI

Union Petroleum Minister Dharmendra Pradhan today urged banks to scale up disbursement of small loans under MUDRA scheme to the poor, youth and women entrepreneurs in neglected areas of Odisha.

While reviewing the progress of implementation of MUDRA scheme in the state, Pradhan lamented the dismal performance of public sector banks (PSBs), regional rural banks (RRBs) and private banks in disbursing small loans in comparison to micro-finance institutions (MFIs) and NBFCs.

Pradhan also set a target for banks to raise the flow of credit to poor entrepreneurs from the present 35 per cent to at least 45 per cent in 2016-17.

Small loans of up to Rs 2 lakh is being disbursed under MUDRA scheme.

In 2015-16, MUDRA loan disbursement was Rs 5,436 crore against the target of Rs 4,011 crore in the state.

Around 23.43 lakh beneficiaries have taken loans under schemes like Shishu, Kishor, Tarun in MUDRA Yojana during this period.

The target for the current fiscal was fixed at Rs 7,203 crore. Out of this, 40 per cent have been disbursed so far, the minister was informed.

Pradhan asked the banks to provide MUDRA loans to at least 30 lakh beneficiaries in the current fiscal. He also asked the PSBs and RRBs to train at least five lakh youth, women and poor entrepreneurs this year under various training programmes in their Rural Self Employment Training Institute (RSETI).