Mudra Loans Create 10 Lakh Jobs: Punjab & Sind Bank

New Delhi, Apr 10 (PTI) Mudra loans provided by Punjab & Sind Bank over the last 10 years have been able to generate 10 lakh jobs at the grassroot level, the bank's managing director Swarup Kumar Saha said.

Sharing the journey of Pradhan Mantri Mudra Yojana (PMMY) over the past 10 years, Saha said, the bank has disbursed loans to the tune of Rs 12,820 crore under the scheme, benefiting over 6.84 lakh beneficiaries across the country.

"These include small vendors, women entrepreneurs, artisans, and youth, who are now empowered to become economically self-reliant. About 44 per cent of our disbursals have been under the Shishu (loans up to Rs 50,000) category, which speaks about our focus on first-time borrowers and grassroots entrepreneurship," he told PTI.

Punjab & Sind Bank has enabled entrepreneurs to establish and expand their businesses, leading to employment generation, he said, adding, "So far approximately 10 lakh employment have been generated by the bank through this scheme at the grassroots level."

This aligns with the broader national trend, where PMMY has facilitated over 52 crore loans amounting to Rs 33 lakh crore since its launch, thereby fostering large-scale employment opportunities, he said as the scheme completed a 10-year journey.

With the objective of funding the unfunded, Prime Minister Narendra Modi on April 8, 2015, launched PMMY to provide collateral-free institutional credit through Member Lending Institutions.

Under the PMMY, collateral-free loans of up to Rs 20 lakh are extended by member lending institutions (MLIs) viz scheduled commercial banks, regional rural banks (RRBs), small finance banks (SFBs), non-banking financial companies (NBFCs), and microfinance institutions (MFIs), among others.

The loans are given for income-generating activities in the manufacturing, trading and services sectors as well as activities allied to agriculture.

The scheme was launched to encourage small businesses, and banks were asked to provide collateral-free loans up to Rs 20 lakh under three categories -- Shishu (up to Rs 50,000), Kishore (between Rs 50,000 and Rs 5 lakh), Tarun (Rs 10 lakh) and Tarun Plus (Rs 10-20 lakh).

Under the Tarun Plus category, credit facilities can be availed by entrepreneurs who have availed and successfully repaid previous loans under the 'Tarun' category.

As the government continues to prioritise MSMEs, Saha said the scheme is poised to play an even more transformative role in shaping a resilient, self-reliant, and diversified Indian economy.

A noteworthy aspect of Punjab & Sind Bank's participation in PMMY is its focus on empowering women entrepreneurs, he said, adding that the bank has been instrumental in extending financial assistance to women-led enterprises, recognising their potential to contribute to economic growth.

This initiative mirrors the national achievement, where approximately 68 per cent of the total loans sanctioned under PMMY have been allocated to women entrepreneurs, he added.