Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now

Sunday, December 27, 2015

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


You can write to us at

PrajnaCapital [at] Gmail [dot] Com


Leave a missed Call on 94 8300 8300

Post a Comment
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now
Related Posts Plugin for WordPress, Blogger...

Popular Posts

Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now