(FE)
G Kumaresan, a graduate from Konneri Kuppam — a small village near Kancheepuram — came across a banner of Pradhan Mantri Mudra Yojana (PMMJ) at an Indian Bank branch. This was a chance encounter since while running an errand for his employer who owned a welding shop. It was with the Rs 50,000 disbursed by the public sector bank (PSB) that he purchased a welding machine and other accessories to set up a shop of his own. Turning into an entrepreneur from an employee, Kumaresan now earns close to Rs 15,000 per month, more than twice of his earlier income. While banks have been lending to micro, small and medium enterprises, under the Mudra scheme, it seems to have gained some momentum. Data showed that PSBs had lent Rs 33,000 crore to these sectors in FY15 and rose 70% in FY16 to Rs 58,000 crore.
“These kind of lendings have been taking place but is being done in a more focused manner,” says Jiji Mammen, CEO, Mudra. Mammen cites National Sample Survey Office (NSSO) data that 5. 77 crore MSMEs are present in India who employ around 12 crore people. “So under the PMMY, financial institutions need to support this segment of borrowers,” he says.
