So far, PMMY loans have been extended by all public sector banks, regional rural banks (RRBs), cooperative banks, private sector banks, foreign banks, micro finance institutions and non-banking finance companies. While some fintech firms are keen on direct loan disbursal under the PMMY, others are looking to offer their digital expertise and platform to acquire new customers and offer digital services. “Some fintech firms are lending to micro, small and medium enterprises (MSME) and most of the loans given out would qualify as priority sector lending. According to the first person cited above, fintech firms can offer digital services such as e-KYC, e-signature and credit profiling among others to the Mudra lending institutions (MLIs) as well. Mudra officials are again going to hold discussions with fintech firms to evaluate their participation under the scheme this week.

Source: Mint September 27, 2017 18:27 UTC