MUDRA loan scheme worthless in promoting businesses: Chidambaram
Senior Congress leader P Chidambaram on Thursday (September 22) criticised the Centre’s MUDRA loan scheme, saying it was “practically worthless” in promoting businesses.
The former finance minister also said that he is not surprised that the non-performing asset (NPA) ratio is the highest under the MUDRA loan scheme.
“I have long maintained that the MUDRA loan scheme is practically worthless to promote businesses,” Chidambaram said on Twitter.
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The State Bank of India has taken pride that in the Tamil Nadu-Puducherry zone, the bank had distributed ₹1000 crore to 26,750 MUDRA beneficiaries in 2021-22, he said.
I have long maintained that the MUDRA loan scheme is practically worthless to promote businesses
SBI has taken pride that in the TN-Puducherry zone the bank had distributed Rs 1000 crore to 26,750 MUDRA beneficiaries in 2021-22
Mighty impressive numbers until one does the math
— P. Chidambaram (@PChidambaram_IN) September 22, 2022
Mighty impressive numbers until one does the mathematics, Chidambaram said, adding that the average size of the loan to 26,750 beneficiaries is only ₹3.73 lakhs.
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What new business can be started with ₹3.73 lakh and how many jobs can be created with ₹3.73 lakh, he asked.
The average size of the loan to 26,750 beneficiaries is only Rs 3.73 lakhs!
What new business can be started with Rs 3.73 lakhs? How many jobs can be created with Rs 3.73 lakhs?
I am not surprised that the NPA ratio is the highest under the MUDRA loan scheme
— P. Chidambaram (@PChidambaram_IN) September 22, 2022
The Pradhan Mantri MUDRA Yojana (PMMY) is a scheme launched by Prime Minister Narendra Modi on April 8, 2015 for providing loans up to 10 lakh to the non-corporate, non-farm small/micro enterprises. These loans are classified as MUDRA loans under PMMY.
(With inputs from agencies)
