Most people do not know (including the press and the sell-side) that the word "Mudra" has 2 meanings.
1. Mudra loans (as spoken of in press)
2. MUDRA, the company
Imp. point - Such loans are not new
Now let us see the other Mudra - Micro Units Development & Refinance Agency Ltd
This is refinancing institution that will provide refi support to the above mentioned institutions.
With the latest warnings, the marketing is possibly backfiring for the government. People perceive direct risk to be on the government, but it was never so.
Narratives are always interesting!
With the latest warnings, the marketing is possibly backfiring for the government. People perceive direct risk to be on the government, but it was never so.
Narratives are always interesting!
“Credit Guarantee Fund for Micro Units”
I do not see institutions other than banks here. That is confusing because NBFCs also give PMMY loans.
This is more a problem for the lending institutions themselves. Some of them are PSU banks and there is indirect risk to taxpayer money.