Under Pradhan Mantri Mudra Yojana (PMMY), institutional credit up to Rs. 10 lakh is provided by Member Lending Institutions (MLIs) to micro/small entrepreneurs, including women for income-generating activities in sectors like manufacturing, trading, services and activities allied to agriculture, said Union Minister of State for Finance Bhagwat Kisanrao Karad in a written reply to Lok Sabha.
The Minister stated that the government allocates annual targets for the amount to be sanctioned under PMMY to MLIs i.e. Scheduled Commercial Banks (SCBs), Regional Rural Banks (RRBs), Non-Banking Financial Companies (NBFCs) and Micro Finance Institutions (MFIs).
For the current financial year (FY), a target of sanction of Rs. 3 lakh crore has been fixed for MLIs. State/UT-wise and Gender-wise targets are not allocated by the Government under PMMY.
“Loans under the Scheme are extended by MLIs as per their commercial parameters, based on their Board-approved policy and extant Reserve Bank of India (RBI) guidelines which, inter-alia includes, the viability of the project, assessment of repayment capacity of the borrower etc,” the minister added.