1. Mudra Bank is proposed to be created with a corpus of Rs. 20,000 crore to refinance MFIs lending to the bottom-of-the-pyramid entrepreneurs running small businesses and wanting to scale them up, or have a dream of starting a new enterprise. The rules in this regard are to be notified.
As the Government sits to draw out the contours of such a bank and the regulations for refinance, we would urge the government to keep the following in mind:
Concerns: Long-term housing finance loans for 7-15 years
While micro and small enterprises are fairly well targeted in this budget, there is no coverage or mention of the housing finance needs of these categories. While the Budget talks of housing for all, how do people in EWS/LIG segments buy or build houses in the absence of access to long-term home loans at reasonable rates?
(The author is Managing Director, Equitas Holdings)