New Delhi, Aug 6 (IANS) The Non-Performing Assets (NPAs) of Public Sector Banks linked to Mudra loans for small and micro enterprises have come down to 3.4 per cent of total loans during the financial year ended March 31, 2024 from 4.89 per cent in 2019-20, Finance Minister Nirmala Sitharaman has informed Parliament.
She said that NPAs of private sector banks linked to Mudra loans declined to 0.95 per cent of total loans in 2023-24 from a peak of 1.77 per cent in 2020-21.
Similarly, the NPAs of Regional Rural Banks, Small Finance Banks and State Cooperative Banks associated with Mudra loans have also come down, reflecting an improvement in the asset quality.
FM Sitharaman further stated that as far as interest rates on Mudra loans are concerned Public Sector Banks offer rates between 9.15 per cent and 12.80 per cent while private sector banks charge between 6.96 per cent to 28 per cent.
However, monitoring mechanisms are in place to ensure fair recovery processes and address any instances of harassment, she added.
She pointed out that data on NPAs is collected every year to ensure that public and private sector banks follow up on their recovery processes diligently.
The Mudra loan scheme, launched in 2015 under the Pradhan Mantri MUDRA Yojana (PMMY), aims to provide financial support to micro and small enterprises.
PMMY is a scheme launched in 2015 for providing loans up to 10 lakh to small and micro enterprises aimed at uplifting the poor.
This limit has now been increased to Rs 20 lakh in the Budget for 2024-25.
This initiative is particularly beneficial for individuals who face financial constraints in starting their own businesses.
The increased loan limit means that they can now access up to Rs 20 lakh, which will be directly transferred to the beneficiary’s bank account.
This financial support is expected to significantly boost self-employment and entrepreneurship across the country.
The borrowers can approach banks directly for Mudra loans or apply through the official portal www.udyamimitra.in.
The PMMY offers three products: ‘Shishu,’ ‘Kishore,’ and ‘Tarun,’ catering to different stages of growth and funding needs for micro units and entrepreneurs.
Borrowers will need to pay an upfront guarantee fee and an annual fee based on the reduced loan balance.
–IANS
pannu/rad
Disclaimer
The information contained in this website is for general information purposes only. The information is provided by TodayIndia.news and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.
Through this website you are able to link to other websites which are not under the control of TodayIndia.news We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, TodayIndia.news takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
For any legal details or query please visit original source link given with news or click on Go to Source.
Our translation service aims to offer the most accurate translation possible and we rarely experience any issues with news post. However, as the translation is carried out by third part tool there is a possibility for error to cause the occasional inaccuracy. We therefore require you to accept this disclaimer before confirming any translation news with us.
If you are not willing to accept this disclaimer then we recommend reading news post in its original language.