Thiruvananthapuram, Sep 17 (IANS): The newly set-up MUDRA bank is going to be a huge succour for the more than 5.77 crore small business units who can look forward for easy financial assistance from it, union Law Minister D.V. Sadananda Gowda said on Thursday.

Speaking to leaders of his Bharatiya Janata Party here, he said this scheme is going to spur growth in the country.

"Under the MUDRA bank there is a scheme that extends a loan up to Rs.1 million for small businesses and this is meant to eliminate the money lenders. This scheme will benefit the 5.77 crore such units in the country and so far 33.31 lakh beneficiaries have been given out Rs 21, 586 crore," said Gowda.

He said this financial assistance scheme is spread over three categories and it includes a ceiling of up to Rs.50,000, Rs.5 lakh and Rs.1 million.

" Preference will be given to those under age 30, women and those from the SC/ST category," added Gowda.