INDIAN INSTITUTE OF TECHNOLOGY ROORKEE

MUDRA YOJANA

Prepared by :- AVINASH KUMAR PASWAN

www.mudra.org.in

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POINT COVERED

SR. NO . PARTICULARS

1. Introduction

2. What is MUDRA Loan Bank ?

3. Categories of loan

4. How to apply for loan ?

5. Who are eligible for loan under MUDRA Loan Yojna?

6. What are the benefits of MUDRA Loan Yojna?

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Case Study

Society,Banks,Information& FacilitySociety,Banks,Information & Facility

Society,Banks,Information & Facility

Society,Banks,Information & Facility

Society,Banks,Information &Facility

Society,Banks,Information &Facility

Society,Banks,Information&facility

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INTRODUCTION

The current policy of Prime Minister Narendra Modi is quite focussed on developing the indian economy.

• Jan Dhan Yojna was born out of this objective of PM and under this yojna ,PM Narendra Modi had launched the micro unit development and refinance agency or MUDRA BANK on 8th april,2015.

• Formally launched in 2015 union budget of India, the mudra scheme or Pradhan Mantri Mudra Yojna was aimed to providing financial support to the small scale entrepreneur located in remote area ,or outside the area of banking.

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Opening Ceremony

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What is a MUDRA loan?

• MUDRA stands for ‘Micro Units Development and Refinance Agency Ltd”.

• Idea: Organization set up and initiated by Prime Minister Narendra Modi.

• Goal: “Fulfilling all the Funding needs of Non Corporate Small Business.”

• Loan Under The Pradhan Mantri Mudra Yojna (PMMY) Scheme: Financing and refinancing options for micro finance institutions and small business sectors.

• Aim: Help Entrepreneurs, start-ups restricted by a sufficient budget for running business.

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Categories

3 Types of Mudra Loans available, They are

1. Shishu Scheme

2. Kishore Scheme

3. Tarun Scheme

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Shishu Scheme

•  This category is for the Start ups. All those businesses that have been just started and looking for Loan will fall in this category.

• Maximum loan amount: to Rs. 50,000

• No loan processing charges

• Interest Rate: 1% per month

• Maximum Loan Repayment Tenure: up to 5 years

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Kishore Scheme

• This one is for those who have started their business but it has be established yet.  

• Minimum Loan Amount: Over Rs. 50,000

• Maximum Loan Amount: up to Rs. 5 lacs.

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Tarun Scheme

• For entrepreneurs with established micro business units but would want for funding or investment for expansion of the business.

• Minimum Loan Amount: Rs. 5 lacs

• Maximum Loan Amount: up to Rs. 10 lacs

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How to Apply Mudra Loan

• Firstly, approach any of those bank that are listed by the scheme.

• Then provide complete business detail.

• Categorisation of your business into mention three categories.

• Then filling up the Mudra form for loan, along with current account opening in the bank.

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Mudra Loan form

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Eligibility to Attain MUDRA Loan.

• Loan applicant must be an indian citizen, unlike other banks mudra bank offers loan for indian citizen.

• Loan can be available only for micro or small scales businesses from rural area.

• Proper proof for IDENTITY,RESIDENCE along with two set of Proprietor/Partner/Director photos.

• Loan amount should be quoted under the maximum limit of RS 10,00,000.

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What does MUDRA Bank Yojna Aim for ?

• Stabilizing Indian’s Micro finance sector via inclusive participation and regulation.

• Aiding Agencies and microfinance institution by extending credit support.

• Maintaing a registered record of MFIs and agencies for first time ever in history.

• Offering structure guideline to borrowers to prevent business failure.

• Introduction and Implementation of technological support.• Development of standard prootocals.

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Interest rate of MUDRA Loan

• If loan availed under MUDRA SHISHU up to 50,000 then normal rates around 10%-12% interest are charged.

• If loan availed under MUDRA KISHORE up to 5,00,000 which comes under unsecured loan so interest rates would be in between 14%-17%.

• If loan availed under MUDRA TARUN with the margin of 5L to 10L , interested will be at high end start from 16% and varies from bank to bank.

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Disadvantages of MUDRA Banks

• The problems on our economy.

• Financing agencies like NABARD,SIDBI are not functioning good.

• MUDRA Bank promotes Shadow Banking.

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Impact on Indian economy

• Increased entrepreneurial success will immediately boost GDP of demographic region where the business located.

• Increased business success will mean increased employment and increased demand for good and service.

• Increased demand in return stimulates the manufacturing segment of the economy and supply of goods

• More spending powers in hand of general populace.

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Which sector will be covered by MUDRA Yojna

S.NO. SERVICES

1. LAND TRANSPORT

2. TEXTILE PRODUCT

3. FOOD PRODUCT

4. SOCIAL,PERSONAL &COMMUNITY SERVICE

MUDRA loan VS PERSONAL loan

MUDRA LOANS• Only for business purpose.

• Governance by government.

• Interest rate 10%-16%.

• Credit in form of MUDRA cards.

PERSONAL LOANS• Universal types of loan.

• Availed by both public and private banks.

• Interest rate 11%-22%.

• Credited to personal account.

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Some data

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2015_16

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2015_16

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2015_16

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THANKS