Prime Minister Narendra Modi countered accusations that his government’s policies favour the wealthy, rejecting claims from critics, including opposition parties like Congress, that his administration prioritises corporate interests over the poor and middle classes. He cited Pradhan Mantri Mudra Yojana (PMMY) data during an interaction with beneficiaries.
Interacting with selected beneficiaries of the PMMY on the 10th anniversary of the scheme, he said, "₹33 lakh crore has been disbursed to the people of the country without any guarantee. You read in the newspaper that this is a pro-rich government. Even if you add up the total of all the rich, they would not have received ₹33 lakh crore. ₹33 lakh crore has been given to the common man of the country"
PMMY and its impact
With the objective of funding the unfunded, Prime Minister Modi launched PMMY on 8 April 2015 to provide collateral-free institutional credit through Member Lending Institutions. “It is particularly heartening that half of the Mudra beneficiaries belong to SC, ST and OBC communities, and over 70 per cent of the beneficiaries are women. Every Mudra loan carries with it dignity, self-respect and opportunity. In addition to financial inclusion, this scheme has also ensured social inclusion and economic freedom,” he said.
He added that in the Mudra scheme, the highest number of women have come forward. Women have applied for the most loans, received the most loans, and are also the fastest to repay them.
Future plans and loan structure
The Prime Minister also assured the beneficiaries that the government would review the scheme and take steps to further improve it. He said the government would continue to focus on ensuring a robust ecosystem where every aspiring entrepreneur has access to credit and the opportunity to grow.
What is PM Mudra Yojana?
Under the PMMY, collateral-free loans of up to ₹20 lakh are extended by Member Lending Institutions (MLIs), including scheduled commercial banks, regional rural banks (RRBs), small finance banks (SFBs), non-banking financial companies (NBFCs), and microfinance institutions (MFIs). The loans are given for income-generating activities in manufacturing, trading, services, and activities allied to agriculture.
