MUDRA loans: Big States get a major share; smaller ones left high and dry -Radheshyam Jadhav

-The Hindu Business Line

TN entrepreneurs account for 10% of loans disbursed

The growth of entrepreneurship in the non–corporate small business sector (NCSB) in smaller States has not received any major boost under the Central government’s ambitious MUDRA loan scheme.

Data show that States that already have higher Credit–Deposit (C-D) ratios — a yardstick that indicates better access to institutional credit — are the ones reaping the benefit of the scheme.

While six large States led by Tamil Nadu have received over 50 per cent of the ?6.82-lakh crore MUDRA loans disbursed till date, a majority of North-East States and Union Territories have not received even 1 per cent of the total MUDRA loans.

Interestingly, 60 per cent of the total loan sanction comes from these top six States.

MUDRA, a financial institution that stands for Micro Units Development and Refinance Agency Ltd, was set up by the government for the development and refinancing of micro enterprises. The scheme announced in 2016 is aimed at providing funding to the non-corporate small business sector through various last-mile financial institutions.

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The Hindu Business Line, 4 December, 2018,

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