MUDRA: an initiative of government to provide financial assistance to SMEs
Puja Bhardwaj | StartupCity Magazine
Micro-unitsDevelopment and Refinance Agency or MUDRA is a financial initiative; it wasestablished by the Government of India in April 2015. It aims to provide integrated financialassistance to the micro-units like small manufacturing units, food serviceunits, and small industries and grant them adequate funds. Under MUDRA scheme, efforts are made toextend the facility of institutional finance to small business entitiesassociated with different trading, manufacturing, and service activities.
MUDRA empowers small borrowers to borrow fromall Public Sector Banks like PSU Banks, Regional Rural Banks, and CooperativeBanks, Private Sector Banks, Foreign Banks, Micro Finance Institutions (MFI)and Non-Banking Finance Companies.
The scheme providesloans into three different categories:
Shishu – underShishu, you can avail loan up to Rs. 50,000
Kishore- underKishore, you can avail loan from Rs. 50,001 to Rs 5 lakhs
Tarun- under Kishore, you can avail loan from 5lakhs and to Rs 10 lakhs
This schemeis for all Indian people who want to start their startup. If you have abusiness plan for a non-farm sector like manufacturing, processing, trading, orservice sector, you can apply for this scheme. But this scheme is for business havingcredit less than Rs 10 lakh.
Sectors under MUDRA
This schemewas launched to maximize coverage of beneficiaries and tailor products to meet theneeds of specific business activities. Presently, it is offered for thebusiness in several sectors including:
The Objective of the MUDRA Scheme
Mudra loan is initiated for numerous purposes that provide income generation and employment creation. Here are some major objectives of this scheme:
How to apply
Borrowers,who want to avail this scheme under Pradhan Mantri MUDRA Yojana (PMMY), theyneed to submit the below documents:
Importance Documents to submit:
Note: Applicant should not be a defaulter in any Bank