Large number of small traders are incapable to obtain loans under the MUDRA Yojana scheme
New Delhi: Traders’ body CAIT (Confederation of All India Traders) has recommended the government to review the implementation of MUDRA Yojana, appealing that a large number of small traders are incapable to obtain loans under the scheme.
It also insisted the government to make MUDRA Yojana an independent regulator, endorsing that non-banking finance companies, micro finance institutions, trusts & societies should be linked with MUDRA Yojana and banks should be directed to refinance such bodies instead of awarding loans directly to the borrowers.
“Large number of small traders for whom MUDRA Yojana was launched are not capable to obtain loans regardless of all attempts and are being turned down by banks on one pretext or the other,” CAIT stated.
Talking about the progress of the MUDRA Yojana, PM Narendra Modi in his address to the nation on Saturday had stated it was as inspiring as last year, with nearly 3.5 crore people benefitting from it.
“The government now targets to double this, giving priority to dalits, tribals, backward classes and women,” he had stated. Banks are expected to disburse Rs 1.80 lakh crore loans under the Pradhan Mantri Mudra Yojana (PMMY) in the current financial year.
Previous year, 3.5 crore beneficiaries availed of Rs 1.22 lakh crore loans under PMMY Scheme. Under the scheme, loans ranging from Rs 50,000 to Rs 10 lakh are provided to small entrepreneurs.
In addition, CAIT recommended the government to set up a Digital Payments Promotion Board to encourage more people to adopt digital payment mechanisms and monitor the digital payments scenery in the country.
The board should involve of senior government officers, representatives of different verticals of non-corporate sector comprising trading community and payment technology providers, banks & other financial institutions, the Confederation of All India Traders (CAIT) stated.