MYSURU, July 31: More than 25,000 micro and small entrepreneurs in this district have benefitted from the Pradhan Mantri Mudra Yojana (PMMY) since its launch last year and the banks have been directed to increase the coverage during the current financial year.
A majority of the beneficiaries are fruit and vegetable vendors, roadside hawkers and the like and have received amount ranging from Rs. 5,000 to Rs.50, 000 under the Shishu category entailing no collaterals.
The District Lead Bank Manager, State Bank of Mysore, K N Shivalingaiah told UNI that in all 25,565 entrepreneurs have benefitted from PMMY in Mysuru district and the total outgo from all the banks was to the tune of Rs. 251.29 crore as on May 31.
He said the outgo from banks was highest under the Shishu category (for loans up to Rs.50,000) and they were mostly availed by vendors and hawkers. As many as 17,668 beneficiaries were from this category. With a nominal rate of interest of around 12 per cent which varies slightly from bank to bank the scheme has provided them a relief from usury practiced by private moneylenders.
The scheme is gaining traction among vegetable vendors and hawkers who otherwise used to pay exorbitantly high rates per day as against a nominal rate of interest that is charged by banks per annum, Mr Shivalingaiah said.
Entrepreneurs seeking loan in the range of Rs 50,000 to Rs.5 lakh (Kishor category) without any collateral come next and there are 6,731 beneficiaries under this category in the district. This includes renewal of existing loans as well as new beneficiaries engaged in minor trading activities. As many as 965 people have received loan under Tarun category. The total outgo under this category from the banks is Rs.83.70 crore, said Mr Shivalingaiah. The Regional Rural Banks (RRBs) in the district have promoted this concept in the hinterland and out of 25,565 beneficiaries under PMMY, 3,757 people have availed loans from RRBs to the tune of Rs.22.35 crore so far.
Among the major commercial banks, State Bank of Mysore has covered 2,845 beneficiaries and lent Rs.65.94 crore followed by Canara Bank, Vijaya Bank, Corporation Bank and Syndicate Bank besides the Cauvery Grameena Bank. Mr Shivalingaiah said coverage and reach under PMMY is expected to increase as the scheme will not only address the livelihood issue of the petty vendors and traders but will help shore up the economy. (UNI)
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