Published by Er K.N. Singh
MUDRA LOAN SCHEME
MUDRA itself is not a financing agency; it’s solely a finance supporting agency having its full name –Micro Units Development and Refinance Agency Ltd.
Thus MUDRA means Micro-Units-Development and Re-finance Agency.
India is a developing country with a big economy. Industry and service sectors have a major share in the economy. Any developing country needs a successful running of these sectors by coming up with new domestic entrepreneurs. MSME sectors play a vital role in country development. These sectors also have a major role in employment generation.
These days’ youth employment has become a colossal drawback.
There is a vast gap between the coming opportunities of Govt. jobs and unemployed youth. To solve these problems, only one sector is providing an opportunity for Indian youth is the MSME sector.
Unemployment is stressing down the Govt. To come up with these stresses, Govt. is exercising continuously on MSME sectors for developing productions, product quality, and productivity with new packaging technology for employments generation.
Exercising on these sectors, Govt. is promoting MSME units by launching many schemes. MUDRA Yojana is one of the key schemes of Modi Govt.
The survey conducted by NSSO in 2013 explains that about 5.77 crores of micro and small units are running were about 12 crore people got employments. All units are running under proprietorship or individual account enterprises. Out of which around 60% proprietors are coming from OBC/SC/ST. These units have been set up by own finance or finance is taken from private financiers for running successfully the unit. This is a matter of concern for India Govt. Keeping in mind Govt. has announced several schemes for MSME enterprises. So that, existing entrepreneurs and new coming up entrepreneurs will come out from the private financier. Mudra Yojana may bridge this gap with increasing confidence and inspire the existing and new coming up entrepreneurs. Mudra Yojana was launched on 1st April-2015. It is known as Pradhan Mantri Mudra Loan Yojana (PMMY)
It is a self-supported agency for refinancing the Banks and similar financing institutions for the development of micro and small enterprises.
This is the main object of MUDRA. MUDRA also supports the development of production capacity, new technology to improve production, productivity, and packaging.
Works of MUDRA:-
This the agency provides loans to Banks and similar financing institutions for setting up development, installing new technology and expansion of existing enterprises.
It has categorized MUDRA Yojana into three categories:- 1. Shishu, 2. Kishor and 3 Tarun category.
- SHISHU category:- Shishu the first category of Mudra loan scheme is for the new small start-up entrepreneurs. They have framed this category for those entrepreneurs who required only 50,000/- loan can apply in this scheme. An entrepreneur should have to well express his new business ideas to the financial lending institutions to get the required loan sanction and disbursal.
- KISHOR Category:- KISHOR the second category of Mudra loan scheme and has been framed for those entrepreneurs who have already existed, viable and successful running enterprises. This category covers a loan amount above Rs.0.50 lakhs to Rs 5.00 lakhs. To take a loan in this category, the applicant will present the relevant documents with proof of successfully running the enterprise to the financing institutions.
• TARUN Category:- It is the third category of the Mudra loan scheme. An entrepreneur with existing & successful running enterprises can apply for loan sanction up to max. Rs.10.00 lakhs. To expand capacity, productivity and quality products by setting up new technology for increased capacity, product quality, pollution control, and packaging systems.
- Rate of Interest for these three classes of gesture loans might vary Bank to Bank depending upon various factors.
- Mudra loan does not require any collateral security or third-party guarantee.
As per data of the Finance Ministry of India as on 22 March 2019, about Rs. 2, 82,594.30 crores it has sanctioned to 541.28 lakhs borrowers out of which it is 46% in Shishu category, 32% in Kishor Category and 22% in the Tarun category.
The data says that there are 541,27,092 accounts, out of which the Shishu account is 469,04215, the Kishor account is 58,64,952 and the Tarun account is 13,57,925.
In these accounts, ladies’ borrowers are 340.45 lakhs and OBC/SC/ST borrowers are 259.71 lakhs.
There is about 107.57 lakhs are the new entrepreneurs. Achievements Under Mudra Loan Scheme Since Inception.
FEATURES OF MUDRA LOAN
- Facility available:- Composite loan, Term loan and working capital loan.
2. Quantum of loan:- Minimum Rs. 0.50 lakhs and maximum Rs.10.00 lakhs.
3. Repayment period:- About 3 to 5 years with a moratorium period of 6 months.
4. Purpose of loan:- To set up new units, Technology modernization of existing units to improve capacity, product quality, productivity, new packaging ideas, and business purpose.
5. Targeted groups:- Manufacturing sectors, service sectors, trading sectors, and allied agricultural activities.
6. Collateral securities:- Assets created by loan, existing assets and to be covered under CGFMU.
7. The age limit is a minimum of 18 years and should be Indian.
- Proof of Identity – Adhar Card.
- Passport size photos.
- Quotation for Plant and Machinery.
- Caste certificate.
- Qualification certificate
- Residence Proof.
Created by Er. K. N. Singh