Banks to disburse Rs 1.80 lakh crore loans under PMMY in FY17: Jayant Sinha

Having met the target last year, banks are expected to disburse Rs 1.80 lakh crore loans under the Pradhan Mantri Mudra Yojana (PMMY) in the current fiscal, Minister of State for Finance Jayant Sinha said today.

Last year, 3.5 crore beneficiaries availed Rs 1.22 lakh crore loans under PMMY. The scheme is being improved this year, Sinha said while addressing the financial literacy camp held here.

Major improvements are also in the offing for Micro Units Development and Refinance Agency Ltd (Mudra) Yojana including providing of technical support and hand-holding borrowers for setting up business, he said.

Besides, loan origination system would be put in place for proper monitoring of the loans, he said.

Under PMMY, loans ranging from Rs 50,000 to Rs 10 lakh are provided to small entrepreneurs. As of now, three products available under the PMMY are Shishu, Kishor and Tarun, to signify the stage of growth and funding needs of the beneficiary micro unit or entrepreneur.

Shishu covers loans up to Rs 50,000 while Kishor covers those above Rs 50,000 and up to Rs 5 lakh. Tarun category provides loans of above Rs 5 lakh and up to Rs 10 lakh.

Sinha also said the government has put the economy back on track with the help of progressive policies adopted by it.

The improvement in the economy has resulted in an increased inflow of FDI, he said, adding that India has become the number one FDI destination in the world and this has been achieved in two years of the NDA rule.

Various social sector schemes including Atal Pension Yojana launched by the government have become a shield for the poor, he said. He also said that the objective of 'Make in India' is to provide jobs to youth.