New Delhi, Jul 10 (PTI) Attributing the rise in bad loans to rich corporates, Urban Development Minister M Venkaiah Naidu today said poor people have track record of highest repayment and banks need to focus on underprivileged.
“The outlook of banks is also changing. It has to change further. We should not think of Allayas and Mallyas to give loans. We should think about Pollyas in villages and towns to give loans,” he said.
“The self help groups, the poor women in rural areas, the repayment is 98-99 per cent. NPAs are not because of poor people, NPAs are because of big big people,” he said.
The objective of various government policies is to tackle black money, stop and avoid corruption and ensure the money reaches the needy.
Citing example, he said Mudra is a step in that direction.
The government has been able to provide loans to over 7 crore poor and self employed under the Mudra scheme.
About 7.45 crore entrepreneurs have been given bank loans under the Pradhan Mantri Mudra Yojana as part of the government’s effort to fund the unfunded.
Under the Mudra Yojana, a loan of up to Rs 50,000 is given under the Shishu plan, between Rs 50,000 to Rs 5 lakh under Kishore, and between Rs 5 lakh to Rs 10 lakh under Tarun.
This is published unedited from the PTI feed.