Mudra Bank Yojana – Interest Rate, Introduction, Funding, Benefit
Mudra Bank Yojana: Union Finance Minister Arun Jaitley said the MUDRA Bank was a step in the right direction for “funding the unfunded.” He had proposed the MUDRA Bank in his budget speech in February. Find out Mudra Bank Loan Eligibility, Interest Rates, the procedure to apply and how to get approved for a Mudra Bank Loan under Pradhan Mantri Mudra Yojana. Now you can scroll down below and Check Complete Details Regarding Mudra Bank Yojana.
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Mudra Bank Yojana – Introduction, Funding, Benefits
Micro Units Development and Refinance Agency Ltd (MUDRA) Yojana here, shortly known as MUDRA bank.
Finance is one of important things required for running a business successfully in a timely manner so that the enterprise accomplishes its goals and targets.
Due to the complexity involved in raising funds from various sources available in the market , small and tiny business concerns are unable to get the needed financial support. In order to assist these kind of entrepreneurs and small business concerns Government of India started “MUDRA” bank in April ,2015.
Focus is on
Mudra bank was formed with a mandate to refinance and regulate micro finance institutions and gibe financial assistance to small units that are typically excluded from the mainstream banking system.
Big corporate groups provide jobs to only 1.25 crore people, while small entrepreneurs employ 12 crore people and face problems in getting financial assistance from banks and other formal sources , PM Narendra Modi said. This has stifled growth and limited. In order to strength this type of entrepreneurs by assisting them financially MUDRA bank has been started.
Funding to Mudra
The Bank was started with a corpus of Rs 20,000 crore which would be allocated to the Bank from the money available from shortfalls of priority sector lending. Further amount of Rs 3000 crores will be allocated from Budget as a Credit Guarantee Corpus.
Lending Norms by MUDRA
The Mudra Bank will also formulate lending norms for micro – finance institutions so that small businesses do not face hardship over indebtedness, while getting a fair environment for repayment.
Products to be launched initially
It would cover loans up to Rs 50,000.
2. Kishor :
This will cover the loans of above Rs 50,000 and up to Rs 5 lakh.
3. Tarun :
This plan will cover loans of above Rs 5 lakh and up to Rs 10 lakh.
For accessing above stated products following things are available :
- MUDRA Card
- Portfolio Credit Guarantee
- Credit Enhancement.
Benefits that flow to society from MUDRA Bank
- Loans from Mudra Bank will help to bridge the shortfall in loans for small businesses , who are unable to get institutional credit.
- It also provides credit of up to Rs 10 lakh to small entrepreneurs, benefitting small manufacturing units, small shopkeepers, fruits and vegetable vendors, truck operators, hawkers, artisansin in rural and urban areas.
- It will also act as a partner with State and regional – level coordinators to grant financial assistance to last-mile financiers of small and micro business enterprises.
- It Offers a Credit Guarantee scheme for providing guarantees to loans being offered to micro businesses.