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

Am you Required to E-file Tax Return?

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   Am I Required to 'E-file' My Return? Yes, under the law you are required to e-file your return if your income for the year is Rs. 500,000 or more. Even if you are not required to e-file your return, it is advisable to do so for the following benefits: i) E-filing is environment friendly. ii) E-filing ensures certain validations before the return is filed. Therefore, e-returns are more accurate than the paper returns. iii) E-returns are processed faster than the paper returns. iv) E-filing can be done from the comfort of home/office and you do not have to stand in queue to e-file. v) E-returns can be accessed anytime from the tax department's e-filing portal. For further information contact Prajna Capit...
Read more

Mutual Fund Review: HDFC Index Sensex Plus

  In terms of size, HDFC Index Sensex Plus may be one of the smallest offerings from the HDFC stable. But that has not dampened its show, which has beaten the Sensex by a mile in overall returns   HDFC Index Sensex Plus is a passively managed diversified equity scheme with Sensex as its benchmark index. The fund also invests a small proportion of its equity portfolio in non-Sensex scrips. The scheme cannot boast of an impressive size and is one of the smallest in the HDFC basket with assets under management (AUM) of less than 60 crore. PERFORMANCE: Being passively managed and portfolio aligned to that of the benchmark, the performance of the index fund is expected to follow that of the benchmark and in this respect, it has not disappointed investors. Since its launch in July 2002, the fund has outperformed Sensex in overall returns by good margins.    While every 1,000 invested in HDFC Index Sensex Plus in July 2002 is worth 6,130 now, a similar amount invested in Sensex then wo...
Read more

Mirae Asset Emerging Bluechip Fund

Start Saving for Tax 2018 by Investing in ELSS Funds Online HOW HAS THE Mirae Asset Emerging Bluechip Fund PERFORMED?   With a 7-year return of 25.08%, the fund has outperformed both the category average return (18.04%) and benchmark (13.4%) by a wide margin.   Growth of Rs 10,000 vis-a-vis category and benchmark   Mirae Asset Emerging Bluechip Fund   is a mid-cap oriented fund continues its stellar run, clocking another year of outperformance over benchmark and peers—a feat it has achieved every year since inception. The fund manager plies a strictly bottom-up approach to stock selection and keeps risk contained by focusing on larger mid-caps. A year ago, it had stopped accepting lump sum investments and now the fund has also put restrictions on SIP investments—only allowing SIP on the tenth of every month with an upper limit of Rs 25,000.   It has done so to preserve its return profile in the face of mounting inflows and stretched valuations in the mid-cap space. This step should hel...
Read more

IDFC - Long term infrastructure bonds - Tranche 2

IDFC - Long term infrastructure bonds What are infrastructure bonds? In 2010, the government introduced a new section 80CCF under the Income Tax Act, 1961 (" Income Tax Act ") to provide for income tax deductions for subscription to long-term infrastructure bonds and pursuant to that the Central Board of Direct Taxes passed Notification No. 48/2010/F.No.149/84/2010-SO(TPL) dated July 9, 2010. These long term infrastructure bonds offer an additional window of tax deduction of investments up to Rs. 20,000 for the financial year 2010-11. This deduction is over and above the Rs 1 lakh deduction available under sections 80C, 80CCC and 80CCD read with section 80CCE of the Income Tax Act. Infrastructure bonds help in intermediating the retail investor's savings into infrastructure sector directly. Long term infrastructure Bonds by IDFC IDFC issued an earlier tranche of these long term infrastructure bonds on November 12, 2010. This is the second public issue of long-te...
Read more

Section 80CCD

Top SIP Funds Online   Income tax deduction under section 80CCD Under Income Tax, TaxPayers have the benefit of claiming several deductions. Out of the deduction avenues, Section 80CCD provides t axpayer deductions against investments made in specific sector s. Under Section 80CCD, an assessee is eligible to claim deductions against the contributions made to the National Pension Scheme or Atal Pension Yojana. Contributions made by an employer to National Pension Scheme are also eligible for deductions under the provisions of Section 80 CCD. In this article, we will take a look at the primary features of this section, the terms and conditions for claiming deductions, the eligibility to claim such deductions, and some of the commonly asked questions in this regard. There are two parts of Section 80CCD. Subsection 1 of this section refers to tax deductions for all assesses who are central government or state government employees, or self-employed or employed by any other employers. In...
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