The Bharatiya Janata Party (BJP) announced on Sunday that they plan to make some changes to help small businesses in India. They want to increase the maximum loan amount under the Mudra loan program from Rs 10 lakh to Rs 20 lakh. This would provide more financial support to non-corporate, non-farm entrepreneurs who need collateral-free micro credit. Since its launch in 2015, the Mudra loan program has already given out over 460 million loans worth Rs 27 trillion.
Pradhan Mantri MUDRA Yojana (PMMY) was launched by the Hon’ble Prime Minister on April 8, 2015 for providing loans up to 10 lakh to the non-corporate, non-farm small/micro enterprises.
Prime Minister Narendra Modi, while unveiling the BJP’s manifesto for the upcoming Lok Sabha elections in 2024, expressed his confidence in the success of the Mudra loan program and its ability to create more entrepreneurs. He believes that increasing the loan limit will contribute to the growth of the industry.
The BJP also recognizes the importance of self-employment in generating employment opportunities, especially considering the limitations of government jobs and the increasing adoption of AI and machine learning in the private sector. To support small traders and MSMEs, the BJP plans to simplify the goods and services tax (GST) portal, make affordable insurance products available to protect against accidents, encourage the adoption of Open Network for Digital Commerce (ONDC), and provide cybersecurity products to protect against cyber threats and fraud.
Additionally, the BJP aims to reduce compliance burdens for small traders and MSMEs, making it easier for them to do business. They will work with state governments to simplify legislations and create a more favorable environment for small businesses to thrive.
How to apply for Mudra Loan?
The borrower can approach any of the lending institutions mentioned above or can apply online through this portal www.udyamimitra.in .
The BJP’s manifesto also highlights the success of the PM-SVANidhi program, which has provided credit to 6.3 million street vendors. They intend to expand this program to include more street vendors and traveling salesmen from small towns and villages across the country. The PM-SVANidhi program, launched during the COVID-19 pandemic, offers collateral-free loans of up to Rs 50,000 to eligible street vendors.
Overall, the BJP’s plans aim to support and empower small businesses, recognizing their crucial role in generating employment and driving economic growth in India.
we should happy that in MSME sector from when the Bank sanction guarantee and collateral free Mudra yojna starts upto Tem.lakhs and application and sanction start online, the retailers become honest to repay the loan because borrowers do not bother to visif the Bank.
with the increasing limit upto 20 lac in Mudra loan, it willl boost our economy and GDP.
Good Initiative…