Chidambaram calls Centre’s MUDRA scheme ‘practically worthless’


New Delhi: Senior Congress leader P Chidambaram on Thursday condemned the BJP-led central government’s MUDRA loan scheme, saying it was “practically worthless” to support businesses.

The former finance minister said that he is not surprised that the ratio of non-performing assets (NPAs) is the highest in the framework of the MUDRA loan scheme.

“I have long maintained that the MUDRA loan scheme is virtually worthless for business promotion,” Chidambaram said on Twitter.

SBI is proud that in TN-Puducherry zone, the bank has distributed Rs 1,000 crore to 26,750 MUDRA beneficiaries in 2021-22, he said.

Huge impressive numbers until you do the math, Chidambaram said, adding that the average loan size to 26,750 beneficiaries is just Rs 3.73 lakh.

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

About the MUDRA scheme

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

Mudra schemes aim to bring businesses into the formal financial system.

Non-agricultural micro and small enterprises that generate income through production, trade and services can take a loan under the PM mudra loan scheme.

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