Provide more MUDRA loans to small businesses, unemployed youth in Telangana: Vinod urges Centre

He pointed out that the percentage and number of beneficiaries of PMMY in Telangana State, however, was much lower when compared to the national average.

Hyderabad: Telangana State Planning Board vice chairman B Vinod Kumar on Tuesday shot a missive to Union Finance Minister Nirmala Sitharaman to ensure fair share of MUDRA Yojana loans to small businesses and unemployed youth in the State. He said the number of beneficiaries under the Pradhan Mantri Mudra Yojana (PMMY) in Telangana State was much lower when compared to the national average.

In his letter, Vinod Kumar appreciated the PMMY for promoting self-employment and supporting small businessmen by providing financial assistance of upto Rs 10 lakh through banks without insisting on collateral security. It had helped 24.48 crore people across the country till March 2020. He pointed out that the percentage and number of beneficiaries of PMMY in Telangana State, however, was much lower when compared to the national average.

The TSPB vice chairman reminded that he had earlier requested the Union Finance Minister to provide additional target of sanctioning of 30 lakh MUDRA loans to eligible borrowers in the State. The banks, he said, have not taken any step to fulfill the shortfall of all previous years besides being reluctant to sanction MUDRA loans in the State. “Only 10.62 per cent of the State population is covered by MUDRA loans as against 17.86 per cent of entire nation’s population till March 2020,” he said.

He requested the Union Minister to instruct the banks in Telangana State to achieve a revised target of sanctioning 28 lakh PMMY loans in a time-bound manner.