INSUBCONTINENT EXCLUSIVE:
Even an artisan can seek a loan under Mudra scheme for a small amount upto Rs 50,000
Mudra was set up for the growth of entrepreneurship in the non-corporate small business sector to
Over 90 per cent of the small business sector doesn't have access to formal sources of finance
Mudra loan offerings are made to refinance for micro units to commercial banks, NBFCs, regional rural banks and cooperative banks and micro
finance institutions (MFIs)
It is publicized as Pradhan Mantri Mudra Yojana (PMMY)
There are four kind of funding support from Mudra: the first one is micro credit scheme for loans upto Rs one lakh finance through MFIs, the
second is refinance scheme for commercial banks/ regional rural banks/ scheduled cooperative banks, the third is meant for women enterprise
programme, and the last one is securitisation of loan portfolio
Mudra is defined as Micro Units Development And Refinance Agency (MUDRA) and it was set up as a wholly owned subsidiary of SIDBI (Small
Industries Development Bank of India).There are essentially three finance schemes under the aegis of MudraShishu: This is meant for the
diminutive firms with loan requirements of upto Rs 50,000.Kishor: The financing through Kishor scheme meets the needs of slightly bigger
firms with loan requirements between Rs 50,000 and Rs 5 lakh.Tarun: This caters to the needs of bigger firms that have loan requirements
higher than Rs 5 lakh but less than Rs 10 lakh.Mudra's delivery channel is conceived to be through the route of refinance primarily to
banks/ NBFCs/ MFIs.Practically anyone can access loan under the Mudra scheme
Even a small time artisan can seek loan under the Shishu category through any banks/ MFIs (micro-finance institution)Even someone who wants
to start a boutique, ice cream parlour, pottery business or a food processing unit can access Mudra loans to start a business, says Mudra's
official website.Eligibility of borrowers: Any Indian citizen who has a business plan for a non-farm income generating activity such as
manufacturing, processing, trading or service sector whose credit need is less than Rs 10 lakh can approach either a bank, MFI or NBFC for
availing of MUDRA loans under PMMY.Mudra credit card: Mudra card is an innovative credit product wherein the borrower can avail of credit in
It provides a facility of working capital arrangements in the form of CC/OD to the borrower
Mudra card is a RuPay debit card, it can be used for drawing cash from ATM or business correspondent or make purchases using point of sale
The card can also be used to repay the amount, reducing the interest cost.Interest rate: In the case of banks, RBI has also put a cap on the
interest rate at base rate/ MCLR for lending micro units by commercial banks by availing of MUDRA refinance
Similarly, the RRBs (regional rural banks) and cooperatives have been given an interest cap of 3.50 per cent over and above MUDRA refinance
rate, while lending to MUDRA loan by availing of MUDRA refinance.In case of NBFCs, RBI has also stipulated a interest cap of 6 per cent over
and above MUDRA refinance while their lending to MUDRA segment.
