Union Finance ministry ties up with 40 companies for extending loans under Mudra scheme

The Union Finance Ministry on May 21, 2018 announced that it has tied up with 40 entities including Flipkart, Swiggy, Patanjali and Amul for extending loans to small entrepreneurs under the Pradhan Mantri Mudra Yojana (PMMY). In order to identify people who can be given funds under the Pradhan Mantri Mudra Yojana (PMMY), the ministry will organise an event in Mumbai on May 23, 2018 to extend loan under the scheme. The CEOs of various Banks like SBI, ICICI, BOB, PNB; senior officials in the rank of MD or CEO from Oil Companies, Railway Board would be part of the event.

PMMY was launched by Prime Minister Narendra Modi on April 8, 2015, for providing loans of up to Rs 10 lakh to the non-corporate, non-farm small/micro enterprises. In 2016-17, the government has extended Rs 2.53 lakh crore credit under the Mudra Yojana. The loans are classified as MUDRA loans under PMMY and these loans are given by Commercial Banks, RRBs, Small Finance Banks, Cooperative Banks, MFIs and NBFCs. Under the aegis of PMMY, MUDRA has created three products namely ‘Shishu’, ‘Kishore’ and ‘Tarun’ for loans upto Rs 50000, Rs 50000-5lakhs and Rs 5-10 lakhs respectively.

Key Highlights:-
1. For funding the small entrepreneurs, the ministry has identified 40 companies as the biggest job creators.
2. These companies will identify people who need loans under the Mudra Yojana, endorse them and the loans will be extended to them under the scheme.

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