Mudra Bank refinances Rs 1,500 cr to micro units under Pradhan Mantri Mudra Yojana

Mudra Bank, which has been set up to provide credit to micro units, has so far refinanced Rs 1,500 crore under the Pradhan Mantri Mudra Yojana. "In the first nine months of inception, Mudra Bank has so far refinanced Rs 1,500 crore to micro units through public sector banks," Mudra Bank CEO Jiji Mammen said.

He said under the Mudra loan scheme, total disbursements made to banks and others were to the tune of Rs 75,000 crore. During this fiscal, disbursement target is Rs 1.22 lakh crore, he told reporters on the sidelines of the Eastern India Micro-finance summit in Kolkata.

Out of the Rs 1,500 crore refinanced, Rs 800 crore were being taken by banks and the balance by micro-finance institutions (MFIs) and NBFCs, he said. The government had provided Rs 20,000 crore to Mudra Bank as equity capital.

Mammen said if banks wished to avail of refinance from Mudra, they would have to extend credit at the base rate. Mudra would charge 6.72 per cent interest from the banks, he said adding, it would also provide credit guarantee support for the loans taken.