State-run banks will kick off mega credit campaigns across the country on Friday to give a push to the Pradhan Mantri Mudra Yojana (PMMY).
"This (campaign) will not only generate greater credit to micro enterprises but also create a sound ecosystem subsequently for bank credit to aspiring entrepreneurs especially small and micro entrepreneurs," the finance ministry said in a statement. The campaigns will run till October 2.
All state-run banks, regional rural banks and private banks together have a target of 1.22 lakh crore during the current financial year for disbursement to small and micro enterprises up to 10 lakh.
Mudra has been established as a subsidiary of SIDBI, with an initial corpus of Rs 5,000 crore to provide refinance to all banks seeking refinancing of small business loans under PMMY. As of September 22, a total of 35.60 lakh borrowers have availed of credit under Mudra to the tune Rs 24,123 crore. Of these, 52 per cent of beneficiaries are women and about 50 per cent new enterprises.