The primary schemes of the Department of Financial Services (DFS) for granting loans to businesses are the Pradhan Mantri Mudra Yojana (PMMY) and the Stand-Up India Scheme (SUPI).
Under PMMY, Member Lending Institutions (MLIs) provide institutional credit up to Rs. 10 lakhs for entrepreneurial activities to micro/small business units. This includes new enterprises that help create income-generating activities in manufacturing, trading, services, and agriculture-related activities. MLIs are given annual objectives for the amount to be sanctioned under PMMY by the government. MLIs have been given a sanction goal of Rs. 3.00 lakh crore for the current financial year (FY).
Since the Scheme’s launch in April 2015, according to data posted by Member Lending Institutions (MLIs) on the Mudra site as of 31.03.2021, loans to the tune of value 15.52 lakh crore have been sanctioned under PMMY across the nation. More than 6.80 crore loans worth Rs. 5.20 lakh crore has been provided to New Entrepreneurs/Accounts out of this total. Dr Bhagwat Kisanrao Karad, the Union Minister of State for Finance, stated it during a response to a question in Lok Sabha proceedings.
The Minister further noted that the government responds to concerns received from time to time regarding the execution of PMMY & SUPI, such as denial of loan applications or non-release of funds, and that these issues are addressed in collaboration with the respective banks.
The Minister explained that the other flagship scheme, Stand-Up India (SUPI), facilitates bank loans between Rs.10 lakh and Rs.1 crore to at least one Scheduled Caste/ Scheduled Tribe borrower. The scheme further provides at least one-Woman borrower per bank branch of Scheduled Commercial Banks for setting up greenfield enterprises in trading, service sectors, agriculture, as well as manufacturing.
