Finance Ministry ties up with 40 big daddies of job creation to extend loans to small entrepreneur

New Delhi, May 22: In order to extend loans to small entrepreneurs under the Mudra scheme, the finance ministry has tied up with 40 entities including Flipkart, Swiggy, Patanjali, and Amul, which are big job creators.

Financial Services Secretary Rajiv Kumar said that in order to identify people who can be given funds under the Pradhan Mantri Mudra Yojana (PMMY), the ministry will organize an event in Mumbai on Wednesday (23 May) to extend loan under the scheme. He said about 40 companies have been identified as biggest job creators.

He said people who need money under the Mudra scheme approach the banks, but with this initiative, the financial services department is trying to reach out to those who need loans for their businesses but have not approached the banks.

These companies will identify people who need loans under Mudra Yojana, underwrite them and we will extend loans under the scheme.

Further, discussions will also be held to formulate a MUDRA scheme to consider extending finance to retail franchisee/ transport solutions /suppliers of entities like Flipkart, Amazon, Uber, Ola, OYO, Amul, Patanjali and Zomato requiring loans up to Rs 10 lakh under the Yojana.

PMMY was launched by Prime Minister Narendra Modi on April 8, 2015, for providing loans of up to Rs 10 lakh to the non-corporate, non-farm small/micro enterprises. Last fiscal the government has extended Rs 2.53 lakh crore credit under the Mudra Yojana, while Rs 5.73 lakh crore has been extended in last 3 years.