Chidambaram calls Centre’s MUDRA scheme ‘practically worthless’

New Delhi: Senior Congress leader P Chidambaram on Thursday denounced BJP-led central government’s MUDRA loan scheme saying that it is ‘practically worthless’ to promote businesses.

The former finance minister said that he is not surprised that the non-performing asset (NPA) ratio is the highest under the MUDRA loan scheme.

“I have long maintained that the MUDRA loan scheme is practically worthless to promote businesses,” Chidambaram said on Twitter.

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SBI has taken pride that in the TN-Puducherry zone the bank had distributed Rs 1000 crore to 26,750 MUDRA beneficiaries in 2021-22, he said.

Mighty impressive numbers until one does the mathematics, Chidambaram said, adding that the average size of the loan to 26,750 beneficiaries is only Rs 3.73 lakh.

What new business can be started with Rs 3.73 lakhs and how many jobs can be created with Rs 3.73 lakhs, he asked.

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About MUDRA scheme

The Pradhan Mantri Mudra Yojana (PMMY) scheme launched by Prime Minister Narendra Modi on April 8, 2015 extends affordable credit to micro and small enterprises.

Mudra schemes are designed to bring enterprises into the formal financial system.

Loans under PM mudra loan scheme are available to non-farm micro or small enterprises engaged in income generation through manufacturing, trading and services.

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