Collateral Free Funding to Lower Income Groups by Mudra Bank
After accomplishing the task of banking the unbanked population of India with Jan Dhan Yojana, Modi sarkaar now aims to financially support the Small business units through Micro Units Development Refinance Agency (MUDRA Bank).
Update: Bank of Baroda has started providing loans under Mudra Scheme. Visit Bank of Baroda nearest branch to get more information and do share your experience in the comment box.
Andhra Bank has so far disbursed Mudra Loan amounting to Rs.240 crore.
“Fund the Unfunded”, this is the role envisaged for laying down the foundation of Rs.20,000 crore Mudra Yojana on 8th April, 2015. All the sole-proprietors or entrepreneurs carrying on Small and Medium Enterprises, who find it difficult to get credit/loan/funds through financial institutions, will be given collateral free financial aid up to Rs.10 lakhs.
What is Mudra Bank?
Mudra Bank stands for Micro Units Development Refinance Agency which will act as a regulator of all ‘Micro-Finance Institutions’. The aim of setting up Mudra Bank is to encourage small and medium business enterprises to expand their operations to survive in the competitive market by bringing down the cost of finance.
What are the products offered by Mudra Bank?
The principal product of Mudra Bank will be providing security free financial aid up to Rs.10 lakhs to Last Mile Financiers of the micro businesses/units under the aegis of the Pradhan Mantri MUDRA Yojana but this funding will be based on the stage of growth of the business enterprises. The loan amount will be provided as follows:
- Shishu : The maximum loan amount under Shishu category would be up to Rs.50,000/-
- Kishor : The loan amount under Kishor category would be from Rs.50,000/- and up to Rs.5 lakh
- Tarun : The loan amount under Traun category would be from Rs.5 lakh and up to Rs.10 lakh
Who are the Beneficiaries?
Mudra Bank Beneficiaries would be Small or Medium Business or Entrepreneurs in rural and urban areas having financing requirements up to Rs.10 lakh, including proprietorship/partnership firms running as small manufacturing units, shopkeepers, fruits/vegetable sellers, hair cutting saloon, beauty parlours, transporters, truck operators, hawkers, co-operatives or body of individuals, food service units, repair shops, machine operators, small industries, artisans, food processors, self-help groups, professionals and service providers etc.
When will Mudra Bank Starts?
Pradhan Mantri Mudra Yojana with an initial corpus of Rs.20,000 crore may be converted into the full-fledged mudra bank within 12 months. This means the Mudra Bill will be tabled in the Parliament in the next 6 to 9 months and the Mudra Banks may start lending money from the April next year.
What is Mudra Card?
Mudra Card is kind of credit card which will be given to the borrower at the time of availing loan facility with the bank. This card can be used to buy raw materials and equipments from registered producers or via online means. The credit limit of this card is fixed at 20% of the loan amount, subject to maximum of Rs.10,000/-.
How to apply for security free loan from Mudra Banks?
The process of applying and getting loans for micro and small businesses from Mudra Banks is routed through Small Business Financial Companies, MFIs, NBFCs, Regional Rural Banks and Scheduled Commercial Banks.
Recommended Read: How to Apply for Bank Loan under Mudra Yojana?
As soon as above mentioned organization gets Mudra Offerings, the person looking for security free loan up to Rs.10 lakhs should approach to any of the these organizations.
Contact Information: http://www.mudra.org.in/Nodal-Officers-MUDRA.pdf
(Procedure of Getting Loan, Rate of Interest, Repayment terms etc. will be provided ASAP )