Women cash in on collateral-free loans offered by Mudra Bank

Zee Media Bureau

New Delhi: Women seem to be tapping into NDA'government's new initiative – Mudra Bank - which provides collateral-free loans to entrepreneurs. Women across the country are coming up and are borrowing money and making most from the initiative to set up their ventures in form of beauty parlours, boutiques, tuition centres and many more, according to Times of India report.

Banks have already sanctioned loans amounting to Rs 29,000 crore to over 42 lakh borrowers since April, with Rs 9,000 crore handed out since a campaign was launched a month ago.

The bankers said that a majority of the loans are from street vendors, tea stall owners, beauty parlour and boutique owners or for purchasing auto rickshaws or setting up a repair shop.

Meanwhile, earlier last month, Mudra Bank, which was set up to provide collateral-free loans to SMEs, said that the bank would disperse the loan through nationalised and private banks.

While Rs 70,000 crore is to be dispersed through nationalised banks, Rs 30,000 crore is to be dispersed through private banks. Rs 22,000 crore would be dispersed through regional rural banks, said the CEO, a Nabard executive who is with Mudra on deputation.

Since the organisation was formed in April, it has issued loans worth Rs 24,000 to 40 lakh people.