MSME credit recurs of the country is expected to reach Rs 30 lakh crore in 5 years.
That kind of growth will provide different opportunities for MSMEs through Mudra Bank, said the Managing Director and CEO of Mudra Jija Mammen in a recent event titled 'MSME and Small business financing through Mudra the road ahead' conducted by Indian Merchant Chamber in Mumbai.
Mudra’s main motto is to provide funds to the unfunded. According to a Mudra’s report, there are 57 million small enterprises in India, out of which 60% are of the weaker section of the society and Mudra is working to provide fund availability of the major section. Therefore, the availability of the fund for the enterprise is the major issue and the key concern of Mudra.
Jija also said, “according to the study only 5% can get the formal credit rest either using their own funds or borrowing from friends and relatives”. That was the key reason why the government took the initiative through Mudra.
As per financial budget, Rs 20,000 crore corpus to Mudra was signed out of which Rs 5,000 crore has been received. There are various policies of lending based on the partnership policies we already have 140 partners and which is growing day by day around.Public sector, private sector , regional ,urban cooperative banks are the partners through whom Mudra will be operating. With in 6months after the launch , mudra has able to sanctioned Rs835 crores and lended around Rs340 crores.
Jija also shared about the Mudra card and its access that "Mudra Card is nothing but the debit card which can be issued by the MSMES from any banking sectors to get the access of the credits as per the need. Within last 3-4 months around 1.5 lakh mudra cards has been issued to MSMEs with the fund of Rs 380 crores. In last 2-3 months Rs 37,825 crores has been given to the common charter section of Mudra Bank. Mudra is playing key roles as refinance, regulator and maintaining the ecosystem for the MSMEs."
On Mudra’s challenges and opportunities, Jija said: “according to credit recurrent of the country says that the MSME credit recurs around Rs10.35 lakh crores as per March 2014 it is expected to grow 30 lakh crore in next 5 years."