MUDRA bad loans rise in FY19, even as NPAs decline across banking system

The government’s MUDRA scheme to finance small and micro borrowers has witnessed an increase in bad loans at a time when the system-wide non-performing assets(NPAs) have started showing signs of a decline. NPA is a loan or advance for which the principal or interest payment remained overdue for a period of 90 days. The NPAs… Continue reading MUDRA bad loans rise in FY19, even as NPAs decline across banking system

RBI panel on MSMEs suggests Rs 20 lakh collateral-free loan under Mudra

A Reserve Bank of India(RBI) expert committee tasked with reviewing the current framework for the micro,small and medium enterprises (MSMEs) has submitted its report. The panel has recommended doubling the cap on collateral-free loans to Rs 20 lakh from the current Rs 10 lakh.This will be extended to borrowers falling under the Mudra scheme,self-help groups… Continue reading RBI panel on MSMEs suggests Rs 20 lakh collateral-free loan under Mudra