Collateral-free loans upto ₹50 lakh to be introduced: President

NEW DELHI: To improve access to credit, President Ram Nath Kovind today said the government will introduce collateral-free loans upto 50 lakh for entrepreneurs.

“A facility for entrepreneurs to avail loan up to 50 lakh without any guarantee will also be introduced. Apart from this, new employment opportunities will be generated through appropriate policies in sectors which have the potential to accelerate the economy,” Kovind said addressing the joint session of Parliament.

He said that 19 crore loans have been disbursed for self-employment under the flagship Pradhan Mantri Mudra Yojna. The scheme, which offers collateral-free loans upto 10 lakh, was launched in 2015 to give access to credit to non-farm small and micro enterprises that generate maximum employment.

An effort will now be made to cover 30 crore people by expanding this scheme,” Kovind said.

According to official data, 6.56 million loans worth 32,457 crore have been disbursed under the scheme, since April. In 2018-19, loans worth 3.11 trillion were disbursed, compared to 2.46 lakh a year ago.

Talking about financial inclusion, the President said that after the successful implementation of Jan Dhan Yojana that provides banking services to all households, the government is working towards making banking services available in every village.

In order to ensure that banking services are readily available in every village of the country and in the inaccessible areas of North East, work is being done at a fast pace. About 1.5 lakh post offices in the country are being prepared to provide banking services through India Post Payments Bank,” Kovind said, adding that the goal is to utilise the postman as a mobile bank to bring banking services to every doorstep.

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