Credit and Finance for MSMEs: Prime Minister Narendra Modi government’s two pet schemes to assistance entrepreneurship and self-employment by assisting set-up micro-enterprises — Stand-Up India and Pradhan Mantri Mudra Yojna (PMMY) — have girls as their largest beneficiaries. For the practically 5-year-old Stand-Up India scheme, beneath which bank loans of Rs 1 lakh to Rs 1 crore are facilitated to at least one scheduled caste or scheduled tribe and one-lady borrower per branch of scheduled industrial banks, more than 81 per cent account holders have been girls as on February 26, 2021, according to Ministry of Finance.
“Govt should be complimented for making such gender-responsive policies, to galvanize the way for women entrepreneurship, and particularly for taking cognizance of women’s role in the economy. We do know that 60 per cent of Indian women are sitting at home and that needs massive awakening. The government has recognized this and it is the onus of business chambers such as ours to be the connecting dots to raise consciousness around schemes available,” Jahnabi Phookan, National President, FICCI Ladies Organization told TheSpuzz Online.
“As of 26.02.2021, more than 81 per cent, that is, 91,109 accounts with an amount of Rs 20,749 crore have been sanctioned to women entrepreneurs under Stand-Up India Scheme,” the ministry mentioned in a statement on the occasion of International Women’s Day on Monday. This was up from 73,155 accounts belonging to girls with an quantity of Rs 16712.72 crore has been sanctioned beneath the Stand-Up India scheme as of February 17, 2020.
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Likewise, for PMMY launched in April 2015, “about 68 per cent, that is, 19.04 crore accounts with an amount of Rs 6.36 lakh crore have been sanctioned to women entrepreneurs under MUDRA scheme since inception,” as of February 26, 2021. The scheme intends to give up to Rs 10 lakh loans to the non-corporate, non-farm compact/micro enterprises classified as Mudra loans provided by industrial banks, regional rural banks, compact finance banks, microfinance institutions, and non-banking economic organizations.
Importantly, government procurement from girls-owned micro and compact enterprises (MSEs) has also hit a record higher in FY21 due to the fact the launch of the public procurement policy monitoring platform MSME Sambandh in December 2017 by the government. Government departments, organisations, and ministries had currently bought goods and services worth Rs 563.88 crore from 3,622 girls-owned MSEs as of March 8, 2021, in the present economic year vis-à-vis Rs 393.43 crore worth procurement in FY20 from 3,655 girls MSEs.
Meanwhile, the credit assure fund trust for micro and compact enterprises (CGTMSE), which operates the credit assure scheme for micro and compact enterprises (MSEs), had accorded assure approval to 67,171 loan accounts of girls entrepreneurs for an quantity of Rs 3,366.63 crore as of December 12, 2020, in the present economic year, according to the information shared by the MSME Minister Nitin Gadkari in a written reply to a query in the Rajya Sabha in February this year. The accounts authorized throughout FY20 for girls entrepreneurs beneath CGTMSE to assistance their enterprise expansion and development stood at 1,24,984 involving Rs 5,367.38 crore.