Skip to main content

Mudra Bank Loan

 

Micro Units Development and Refinance Agency Bank (MUDRA) is a refinancing institution setup of government of India for developing and refinancing micro units i.e. helping small borrowers to borrow money i.e. loan. MUDRA will refinance to intermediaries bank such as co-operative societies, regional rural banks and others who provide finance to borrowers running small businesses; proprietor or partnership firms. So basically MUDRA bank will provide loan directly.

Objective of PMMY:

Providing financial support (loan) for the development of individual's who run micro units (non-corporate small business sector – NCSBC) and are denied loans from elsewhere. This will help in promoting entrepreneurship as the hurdle of lack of monetary support will be resolved. Another objective is to provide skill development, entrepreneurship, marketing training and financial literacy. Currently small business sector are deprived of credit and have to either rely on their own income or friends and relatives.

How it will be achieved:

It will be done by setting up subsdiary of Small Industries Bank of India (SIDBI) which provides funding to the micro, small and medium scale enterprises. For this, new products have been created.

Different products under Mudra Bank:

There are three products designed:

  • Shishu: Loans upto Rs. 50,000 would be given
  • Kishore: Loans ranging from Rs. 50,000 to Rs. 5, 00,000 (5 Lakhs)
  • Tarun: Loans ranging from Rs. 5, 00,000 (5 Lakhs) to Rs. 10, 00,000 (10 Lakhs)

As per official data, till 25th October 2015, the loan amount disbursed under each of the above 3 products are as follows:

  • Shishu: Rs. 7992.07 Crore
  • Kishore: Rs. 17039.70 Crore
  • Tarun: Rs. 10380.97

Total accounts opened are 5862028 and the total loan amount disbursed is Rs. 35412.74 Crore.

Benefits & Features of Mudra Bank:

  • Interest rate would be applicable as per RBI guidelines and will vary for each lending institution.
  • Credit can be availed in a hassle free manner
  • Security/collateral free loan
  • Borrowers won't be charged any processing fee which is ideally in the range of 1%-2%.
  • Subsidy is not given to the borrower for the loan availed
  • Problems faced in setting up infrastructure will be resolved

So with Pradhan Mantri Mudra Yojana, these small businesses will get essential loan to run their businesses and eventually contribute to the development of themselves, their families and in turn for the nation's GDP, generating employment too.

Eligibility or who can avail loan facility:

  • Individuals seeking loan should be an Indian citizen.
  • Loan requirement should be less than Rs. 10 Lakh.
  • Loans can be availed by small enterprises from rural and urban areas in various areas such small retailers, women entrepreneurs, manufacturing and trading enterprises and others.

Few of the applicable borrowers are:

  • Those who are seeking vehicle loan – commercial, car, two wheeler
  • Small micro finance agencies
  • Food and vegetable vendors
  • Hair cutting salons
  • Beauty parlour
  • Transport companies
  • Truck operators
  • Food service units
  • Repair shops
  • Machine operators
  • Small industries
  • Artists
  • Food processing companies
  • Self help group
  • Pottery businesses
  • Carpentry
  • Professional service providers

Loan will not be provided to enterprises generating income from farming sector activities.

Pradhan Mantri Mudra Yojana (PMMY) was launched on 8th April 2015 by India's honorable finance minister Shri. Arun Jaitley during the budget held on February 28, 2015

Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds

Top 10 Tax Saving Mutual Funds to invest in India for 2016 or Best 10 ELSS Mutual Funds in india for 2016

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. Franklin India TaxShield

4. ICICI Prudential Long Term Equity Fund

5. IDFC Tax Advantage (ELSS) Fund

6. Birla Sun Life Tax Relief 96

7. DSP BlackRock Tax Saver Fund

8. Reliance Tax Saver (ELSS) Fund

9. Religare Tax Plan

10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 Tax Saver Mutual Funds Online

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

---------------------------------------------

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Leave a missed Call on 94 8300 8300

Popular posts from this blog

Understanding Your Cibil Credit Information Report

   WE ARE all familiar with the anxiety and uncertainty that we feel when applying for a loan. After all, it's the lender who decides whether we can own our dream home, our first car, or whether our children can pursue higher education. In a nutshell, a better life depends on the lender's decisions.    While other factors do play a part in the lender's decision, the Cibil Credit Information Report ( CIR ) plays a crucial role in a lender's decision to approve a loan application.    Previously, lenders would treat all loan seekers equally. Each applicant, if approved by the lender's internal credit policy, would be charged at the same interest rate for a particular loan size and purpose. The lenders would charge a higher interest rate to all the borrowers, in order to compensate for the possible default of a small portion of the loan disbursed. In other words, it's like a professor (the lender) punishing an entire class (borrowers) for the mischief played b...
Read more

Good Loan

Why Is It A Good Loan?: Loans against gold are cheaper and better than personal loans as the former are available at lower interest rates. In contrast, the interest rates on personal loans are not standardised and can vary from bank to bank. Also, a personal loan depends on a host of factors including, the borrower's salary, profession and the purpose for which the loan is being taken.      For instance, the interest rate on a personal loan of 5 lakh falls in a wide range of 15-30%. But loans against gold are available for as low as 11%. Secured borrowing such as a loan against gold, investments or property is cheaper because it is backed by some assets, which command a good value at any point of time. If the borrower defaults on the loan, the banks can liquidate the assets to settle the loan account.    Being a secured loan, the risk of default and credit losses is significantly lower in this loan compared to other forms of loan for personal use. Given the lower risk, gold loa...
Read more

Reliance Health Total

  Reliance Life Insurance has launched Reliance Health Total, a non-linked, non-participating and non-variable health insurance plan . It provides a fixed benefit cover for hospitalisation, critical illnesses and surgeries. The customer can also make a claim for over-the-counter health-related expenses. This is a regular-pay, five-year plan that can be renewed till the age of 99. The plan comes with two options: customers can choose a higher medical reimbursement benefit or a higher sum insured. Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015 1. ICICI Prudential Tax Plan 2. Reliance Tax Saver (ELSS) Fund 3. HDFC TaxSaver 4. DSP BlackRock Tax Saver Fund 5. Religare Tax Plan 6. Franklin India TaxShield 7. Canara Robeco Equity Tax Saver 8. IDFC Tax Advantage (ELSS) Fund 9. Axis Tax Saver Fund 10. BNP Paribas Long Term Equity Fund You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds Invest in Tax Saver Mutual Funds Online - I...
Read more

Right Size your SIPs in terms of tenure and amount

Buy Gold Mutual Funds Invest Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Call 0 94 8300 8300 (India)    Systematic investment plans ( SIPs ) are here to stay. Going by the growing number of SIPs, it does look like investors have taken to them in a big way. Today as much as . 1,000 crore flow into SIPs every month. A SIP, as the name denotes, is a method to invest a fixed amount in a mutual fund at regular intervals --generally monthly or quarterly. It is easy to do and the minimum amount with most mutual funds is a mere . 1,000 per month. You can write post-dated cheques for your investment, or give an auto-debit facility from your bank account. In fact, most investors today prefer setting up an auto debit for their SIPs, since writing cheques is cumbersome. Also, you can choose any tenure that you want for your SIP — six months, one year, five years, 10 years or even opt for a perpetual SIP which will continue forever till you stop it....
Read more

Some tips for individual investors for investment planning

These days, the stock markets are quite volatile in nature with a bearish bias. Rallies do not last long in the markets and peaks of market rallies are reducing. The markets are hitting fresh lows in every fall. Many blue chip stocks are trading 50 percent lower than their high levels. Many stocks are currently trading at their year's low prices or all-time low prices. Many investors have lost their hard-earned money and many others are stuck with stocks that have corrected heavily in the last few weeks. Here are some tips for investors already invested in the stock markets: 1) Hold fundamentally strong options The domestic macroeconomic fundamentals are strong. The GDP growth rate is expected to slow down slightly from the nine percent last year to around 7 - 7.5 percent this year. This is still quite good and encouraging in comparison to other developed countries. The current market crash can be attributed largely to foreign institutional investors' ( FIIs ) outflows but...
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now