MUDRA loan scheme is worthless, says Chidambaram

CHENNAI: Former union finance minister P Chidambaram on Thursday criticised the ruling BJP’s favourite MUDRA loan scheme and said the scheme was worthless to promote business.

Taking to social media to expose the inadequacy of the scheme, Chidambaram said, “I have long maintained that the MUDRA loan scheme is practically worthless to promote businesses. SBI has taken pride that in the TN-Puducherry zone the bank had distributed Rs 1,000 crore to 26,750 MUDRA beneficiaries in 2021-22.”

“Mighty impressive numbers until one does the Maths. The average size of the loan to 26,750 beneficiaries is only Rs 3.73 lakh! What new business can be started with Rs 3.73 lakhs? How many jobs can be created with Rs 3.73 lakhs,” the senior Congress leader quipped on his official Twitter handle.

“I am not surprised that the NPA ratio is the highest under the MUDRA loan scheme,” he added.