HomeBusinessGovernment's MUDRA loan scheme 'practically worthless' in promoting businesses: Senior congress leader...

Government’s MUDRA loan scheme ‘practically worthless’ in promoting businesses: Senior congress leader Chidambaram


The previous Finance Minister additionally stated he’s not stunned that the non-performing asset ratio is the best below the MUDRA mortgage scheme.

The previous Finance Minister additionally stated he’s not stunned that the non-performing asset ratio is the best below the MUDRA mortgage scheme.

Senior Congress chief P. Chidambaram on September 22 criticised the Centre’s MUDRA mortgage scheme, saying it was “virtually nugatory” in selling companies.

The previous Finance Minister additionally stated he’s not stunned that the non-performing asset (NPA) ratio is the best below the MUDRA mortgage scheme. “I’ve lengthy maintained that the MUDRA mortgage scheme is virtually nugatory to advertise companies,” Chidambaram stated on Twitter.

Why do Mudra loans have credit risks?

“The State Financial institution of India has taken satisfaction that within the Tamil Nadu-Puducherry zone, the financial institution had distributed ₹1,000 crore to 26,750 MUDRA beneficiaries in 2021-22,” he stated.

Mighty spectacular numbers till one does the arithmetic, Chidambaram stated, including that the common dimension of the mortgage to 26,750 beneficiaries is just ₹3.73 lakh. “What new enterprise might be began with ₹3.73 lakh and what number of jobs might be created with ₹3.73 lakh,” he requested.

The Pradhan Mantri MUDRA Yojana (PMMY) is a scheme launched by Prime Minister Narendra Modi on April 8, 2015 for offering loans as much as 10 lakh to the non-corporate, non-farm small/micro enterprises. These loans are categorized as MUDRA loans below PMMY.



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