MU­DRA Loans ....................................

194 lend­ing in­sti­tu­tions dis­burse `6.46 tril­lion in 3 years

Banking Frontiers - - Highlights - Me­hul@bank­ingfron­tiers.com

Mi­cro Units De­vel­op­ment and Re­fi­nance Agency (MU­DRA) func­tions as an NBFC sup­port­ing banks and MFIs for lend­ing to mi­cro units hav­ing loan re­quire­ment up to `1 mil­lion un­der the Prad­han Mantri MU­DRA Yo­jana (PMMY), which was launched by Prime Min­is­ter Naren­dra Modi in April 2015.

Cu­mu­la­tive Growth

MU­DRA loans are ex­tended for a va­ri­ety of pur­poses in­tended for in­come gen­er­a­tion and em­ploy­ment cre­ation in man­u­fac­tur­ing, ser­vices, re­tail and agri and al­lied ac­tiv­i­ties. The to­tal amount of loans dis­bursed un­der this scheme was `1.32 tril­lion in the first year (2015-16), which in­creased to `1.73 tril­lion in 2016-17, and to `2.46 tril­lion in 2017-18. A spokesman of the de­part­ment of fi­nan­cial ser­vices says `914.52 bil­lion of MU­DRA loans have been dis­bursed as of 21 Septem­ber 2018 in the cur­rent fi­nan­cial year. The cu­mu­la­tive dis­burse­ment fig­ure is `6.46 tril­lion, against the sanc­tioned amount of `6.68 tril­lion since the in­cep­tion of PMMY.

ShiShu, KiShor, taruN

The in­ter­ven­tions un­der MU­DRA are through ‘Shishu’ (up to `50,000), ‘Kishor’ (`50,000 to `500,000) and ‘Tarun’ (`500,000 to `1 mil­lion) sig­ni­fy­ing the stage of growth / de­vel­op­ment and fund­ing needs of the ben­e­fi­ciary mi­cro unit / en­tre­pre­neur. The spokesman said the cu­mu­la­tive dis­bursed amount of Shishu loans since the be­gin­ning of MU­DRA till 21 Septem­ber 2018 is `2.92 tril­lion (sanc­tioned `2.99 tril­lion), whereas Kishor and Tarun loans have been to the tune of `2.03 tril­lion (sanc­tioned `2.13 tril­lion) and `1.50 tril­lion (sanc­tioned `1.56 tril­lion) re­spec­tively in the same du­ra­tion.

leNDer-wiSe Share

MU­DRA has part­nered with 194 lend­ing in­sti­tu­tions com­pris­ing 27 pub­lic sec­tor banks, 18 pri­vate sec­tor banks, 31 RRBs, 14 co­op­er­a­tive banks, 47 NBFC-MFIs, 26 MFIs and 31 NBFCs. The list is pe­ri­od­i­cally re­vised by the de­part­ment of fi­nan­cial ser­vices as and when new in­sti­tu­tions get added.

MU­DRA is is­su­ing a RuPay debit card against work­ing cap­i­tal lim­its is­sued un­der PMMY. Since the cards is­sued dur­ing a year are ap­pli­ca­ble in the next year also, the num­ber of cards re­ported re­lates to only new cards is­sued dur­ing the year, which is in ad­di­tion to the ex­ist­ing cards. The spokesman says the to­tal num­ber of MU­DRA cards is­sued is over 850,000.”

Col­leCt­iNG BaNK Data

MU­DRA has de­vel­oped a ded­i­cated web por­tal for col­lect­ing data from lend­ing in­sti­tu­tions un­der PMMY. The in­for­ma­tion col­lected also in­cludes state-wise data of each lend­ing in­sti­tu­tion.

CreDit-PluS Ser­viCeS

With a view to en­large the foot­print in de­liv­ery of prod­ucts and ser­vices in the MSME ecosys­tem, SIDBI has launched a

por­tal Udyamim­i­tra.in, which is a vir­tual mar­ket place aimed at pro­vid­ing end-toend so­lu­tions, not only for credit de­liv­ery but also for a host of re­lated ser­vices by way of hand hold­ing sup­port, ap­pli­ca­tion track­ing and mul­ti­ple in­ter­face with stake­hold­ers (i.e. banks, ser­vice providers, ap­pli­cants). The spokesman ex­plains: “MU­DRA bor­rower may also avail the ser­vices of the por­tal. It pro­vides ac­cess to fi­nan­cial ser­vices at 125,000 bank branches and non-fi­nan­cial ser­vices at 17000+ hand hold­ing agen­cies.”

To fa­cil­i­tate fill­ing of loan ap­pli­ca­tion forms on­line, a new fea­ture ‘Hand-hold­ing in A Vir­tual En­vi­ron­ment’ (HAVE), has been in­tro­duced on the por­tal, which may be used by hand-hold­ing for fill­ing in the ap­pli­ca­tion forms on­line on be­half of the ap­pli­cants and send­ing back the filled-in forms back to the ap­pli­cant for sub­mis­sion through the por­tal. The ap­pli­cant may nav­i­gate through the por­tal to iden­tify the na­ture of hand-hold­ing sup­port re­quired. Says the spokesman: “Broadly, hand­hold­ing sup­port is pro­vided in 7 ar­eas of ex­per­tise viz, skilling (vo­ca­tional), fi­nan­cial lit­er­acy train­ing, en­trepreneur­ship de­vel­op­ment pro­gram, men­tor­ing, project re­port prepa­ra­tion, loan ap­pli­ca­tion fill­ing, work sheds from district in­dus­tries cen­ters and mar­gin money for sub­sidy sup­port.”

An­other im­por­tant fea­ture of the por­tal is match­mak­ing be­tween MSME loan seek­ers, lenders and hand hold­ing agen­cies. In­clu­sive ac­cess is pro­vided to all. “All sub­mit­ted ap­pli­ca­tions will be avail­able at vir­tual mar­ket place for credit ac­cess to en­trepreneurs and sta­tus vis­i­ble to all stake­hold­ers like lenders, hand­hold­ing agen­cies, ap­pli­cants, and SIDBI, NABARD and gov­ern­ment agen­cies till the same is dis­bursed by one of the banks,” the spokesman added.

SYN­er­GieS with SChemeS

MU­DRA has cre­ated syn­er­gies with other gov­ern­ment schemes. Un­der the Standup In­dia schemes loan amount is greater than `1 mil­lion. MU­DRA bor­row­ers can grad­u­ate to loans over `1 mil­lion, says the spokes­men, adding: “Fi­nan­cial as­sis­tance un­der Na­tional Ru­ral Liveli­hood Mission (NRLM) and Na­tional Ur­ban Liveli­hoods Mission (NULM), which are el­i­gi­ble ac­tiv­i­ties, are also cat­e­go­rized as PMMY loans.”

The gov­ern­ment has taken var­i­ous steps to­wards ef­fec­tive im­ple­men­ta­tion of the MU­DRA scheme. These in­clude in­ten­sive pub­lic­ity cam­paigns, sim­pli­fi­ca­tion of ap­pli­ca­tion forms, credit guar­an­tee scheme, nom­i­na­tion of MU­DRA no­dal of­fi­cer etc.

The spokesman says in­for­ma­tion of bor­row­ers avail­able in credit bu­reaus helps banks and MFIs for faster credit dis­pen­sa­tion un­der PMMY and also for sub­se­quent loans.

SuP­Port­iNG re­Fi­NaNCe

MU­DRA is giv­ing re­fi­nance to MFIs at a con­ces­sional rate of 6.85% which ben­e­fits the end bor­rower. It has adopted a unique fea­ture of fi­nan­cial in­ter­me­di­a­tion while ex­tend­ing as­sis­tance to NBFCs. NBFCs ex­tend­ing loan / re­source sup­port to MFIs (both NBFC-MFIs and non-NBFC MFIs) for on-lend­ing to ul­ti­mate bor­row­ers, are con­sid­ered as el­i­gi­ble in­sti­tu­tions for re­fi­nance sup­port from MU­DRA. The spokesman clar­i­fies that un­der this, sev­eral smaller MFIs, which are gen­er­ally not el­i­gi­ble to draw re­fi­nance sup­port from fi­nan­cial in­sti­tu­tions on ac­count of their small scale of op­er­a­tions, can avail as­sis­tance from MU­DRA through NBFCs. Un­der this mech­a­nism, as­sis­tance was sanc­tioned to two such fi­nan­cial in­sti­tu­tions.

NPa Per­CeNt­aGe

The spokesman es­ti­mates that cu­mu­la­tive NPA per­cent­age un­der MU­DRA Yo­jana is 2.58% as on 31 March 2018 against dis­burse­ment.

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