2024-08-18 17:35:04
New Delhi: To make it easy for people to get loans for self-employment or setting up small scale industries, Pradhan Mantri Mudra Yojana (PM Mudra Yojana) was launched on 8 April 2015. But it is being misused more than being used properly. This is indicated by a report prepared by NITI Aayog. This report states that people are becoming lax in repaying the loans given under Pradhan Mantri Mudra Yojana (PMMY). That is why the percentage of such loan accounts becoming NPA is increasing year after year.
Loans of government banks are getting stuck more
According to the latest report of Niti Aayog, more PMMY loans are getting stuck in government banks. The number of such loan accounts turning into NPAs is higher there. According to this, between the financial year 2017 and 2022, NPA accounts increased at a CAGR of 22.51 percent. During this period, the amount stuck in NPA accounts has also increased at a CAGR of 36.61 percent. According to this report, while 22.6 percent NPA was recorded in the loan accounts of government banks, it was only 1.3 percent in NBFCs. If the amount stuck in NPA accounts is calculated, then it is 16.9 percent in government banks and only 0.5 percent in NBFCs.
Background check before giving loan
To avoid this situation, NITI Aayog has recommended assessing the eligibility of borrowers under the Pradhan Mantri Mudra Yojana (PMMY). NITI Aayog says that there is a need to prepare guidelines for verification of the background of loan takers. Not only this, the Commission has suggested encouraging e-KYC authentication for loan approval. This will increase the efficiency of evaluation checks.
If there is no guarantee, the risk is higher
Niti Aayog said in the report released on its website, “There is no guarantee for this loan, so proper risk investigation and assessment plays an important role in the results and success of this scheme.” In such a situation, guidelines for loan eligibility and background verification should be listed to provide security to the banks. It is worth noting that most of the borrowers under PMMY are small entrepreneurs who have very limited documents and this makes it difficult for banks to conduct verification checks.
What is PM Mudra Yojana?
Micro Units Development and Refinance Agency (MUDRA) Loan Scheme under Pradhan Mantri Mudra Yojana (PMMY) is an initiative of the Government of India. It provides loans to an individual or individuals, SMEs and MSMEs. 3 loan schemes are offered under MUDRA namely Shishu, Kishor and Tarun. A maximum loan amount of Rs. 10 lakh is provided under Mudra Loan Yojana. To avail Mudra loan, the applicant does not need to deposit any security to banks or loan institutions. This loan can be repaid for up to 5 years.