Collateral Free Credit
The government promoted micro loan scheme 'Mudra' is a great help to first time borrowers and existing entrepreneurs, but the risk of asset quality deterioration is rising
Chhattisgarh based Sri Sibarami, who runs a tea stall, took a Rs 50,000 loan under the Mudra scheme from Allahabad Bank five years ago. Sibarami used the money to upgrade his stall and start selling some snacks. The bank says Sibarami is a success story under the scheme, though he hasn't created any additional jobs. Similarly, Mumbai based Kiran Rathod, working in an electric fitting shop, approached Union Bank of India for a three wheeler loan. He is now driving auto rickshaw as well
