Pradhan Mantri Mudra Yojana
The MUDRA, which stands for Micro Units Development and Refinance Agency Ltd., was founded as a public sector financial organization to enable any last-mile financier to give credit to all types of enterprises in the country. Microfinance provides low-interest loans via this scheme. PM Mudra Loan is a flagship scheme introduced by the Indian government to provide loans of up to Rs. 10 lakh to micro and small businesses.
The Prime Minister announced the Mudra Yojana on 8th April 2015, with the goal of allowing Micro Finance Institutions (MFIs), Non-Banking Financial Institutions/Companies (NBFCs), Small Finance Banks, RBRs, Commercial Banks, Cooperative Banks, and others to provide Low Rate Loans to qualifying organizations. The main purpose of this scheme is to provide funding to the small borrowers or non-corporate small business sectors.
- The scheme, which has a corpus of Rs 20,000 crore, can grant small enterprises between Rs 50,000 and Rs 10 lakh.
- After becoming MUDRA member-lending institutions, banks and MFIs can apply for refinancing under the MUDRA Scheme.
- Mudra Loans are offered for non-agricultural activities up to Rs. 10 lakh, as well as agricultural activities like dairy, poultry, beekeeping, and so on.
- A Mudra Card, which permits access to Working Capital via ATMs and Card Machines, is one of Mudra’s defining features.
Pradhan Mantri Mudra Yojana provides three types of loans:
- Shishu: Covering loans up to Rs. 50,000.
- Kishor: Covering loans above Rs. 50,000 to Rs. 5 lakh.
- Tarun: Covering loans above Rs. 5 lakh to Rs.10 lakh.
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