Do you know the average Mudra loan amount? First read about it and then come back. It's so small that only idiots( and propagandists of course) would claim those loans as "new jobs" created.
Ever heard about the objectives of the Mudra Scheme?
it was also advised that the loan may be given in three categories, i.e. Loan upto ` 50,000 under Shishu; ` 50,000 to ` 5 lakh under Kishor; and ` 5 lakh to ` 10 lakh under Tarun. Also, it was envisaged that more focus will have to be given for the Shishu category.
The Focus is on Micro Loans. When I say Entrepreneur I dont mean someone like a Sunny or Binny Bansal
Tell me how much do you think is required to set up a small tailoring shop or a gol gappa store? Is the owner of the gol gappa shop or tailoring shop not employed?
Lets take example of a tailoring shop. A decent sewing machine costs Rs. 5000. Lets say another Rs. 3000 for other accessories like thread, table, measuring tape, scissors etc. A woman can start the tailoring shop in her own home itself and serve the people of the village. How much loan will she need? is it Rs. 1 Lakh, Rs. 2 Lakh? She can easily start work with a loan as low Rs. 10,000
A golgappa vendor requires a push cart, utensils, Raw Material etc. He does not need a Rs. 1 Lakh loan for all this. He can start with a loan of Rs. 25000. Once his business grows he can employ one person as a helper. So a Rs. 25000 loan gives employment to 2 people.
BTW have you heard of this man
Mohd Yunus
Muhammad Yunus (
Bengali: মুহাম্মদ ইউনূস; born 28 June 1940) is a Bangladeshi
social entrepreneur, banker, economist, and civil society leader who was awarded the
Nobel Peace Prize for founding the
Grameen Bank and pioneering the concepts of
microcredit and
microfinance.
These loans are given to entrepreneurs too poor to qualify for traditional bank loans. In 2006, Yunus and the Grameen Bank were jointly awarded the Nobel Peace Prize "for their efforts through microcredit to create economic and social development from below". The Norwegian Nobel Committee said that "lasting peace cannot be achieved unless large population groups find ways in which to break out of poverty" and that "across cultures and civilizations, Yunus and Grameen Bank have shown that even the poorest of the poor can work to bring about their own development".
[2] Yunus has received several other national and international honours. He received the United States
Presidential Medal of Freedom in 2009 and the
Congressional Gold Medal in 2010.
[3]