Government of India have announced MUDRA (Micro Units Development & Refinance Agency Limited) with a mission to support social development and to create entrepreneurial culture by assisting individuals by providing financial assistance ranging between Rs. 50000 to Rs. 10 lakhs meant for micro businesses under the scheme of Pradhan Mantri Mudra Yojana. MUDRA scheme details are classified into Shishu, Kishor & Tarun categories for serving the people of different socioeconomic backgrounds.
Simplifying, MUDRA is a new institution set up by Government of India to support the development and refinancing activities related to micro units and the primary purpose of MUDRA is to provide financial assistance for non-corporate small business sector, read further to know more about MUDRA scheme details, beneficiaries, features of Mudra Yojana & details of authorized contacts people to avail additional information about the scheme.
Pradhan Mantri Mudra Yojana / MUDRA Scheme Details
Pradhan Mantri Mudra Yojana scheme offerings are mainly classified as following into the following categories to cater the needs of people from various backgrounds.
Shishu category is for loans up to Rs. 50000 and for individuals who are looking forward to start-up the businesses.
Kishor category is for loans between Rs. 50000 to Rs. 5 lakhs and for individuals who have just started their business and looking forward to establish /expand their business.
Tarun category is for loans between Rs. 5 lakhs to Rs. 10 lakhs and for individuals / enterprises having an established business and looking forward to expand business.
It is important to note that a minimum of 60% of the credit flows will be catered to Shishu category loans and rest of the credit flows are meant for Kishore and Tarun category loans.
The MUDRA scheme is designed to cater different sectors / business activities / entrepreneur segments and the noticeable scheme features are as follows:
Sector / Activity Specific Schemes
This is category that is designed to cover majority of the beneficiaries across different business activities and the primary business units that are listed as per the Mudra official website.
Land Transport Sector / Activity – mainly for purchasing transport vehicles like auto rickshaw, passenger cars / taxis, small utility vehicles, etc.
Community, Social & Personal Service Activities – this category helps in catering the requirements for businesses likes beauty parlors, saloons, gyms, tailoring shops, dry cleaning / laundry units, 2/4 wheeler vehicle repair shops, etc.
Food Products Sector – Food sector helps people who would like to start or establish business in food processing units, small-scale industries dealing in making food products like jam, papad, pickles, jelly, ice cream making, biscuits, bakery products, etc., and will also help those who want to set up sweet shops, tiffin center, small-scale restaurants, etc.
Textile Products Sector / Activity – As the name suggests this category caters the needs of textile industry and will help in setting up activities like hand-loom, embroidery works, dyeing, printing, stitching, etc., and also support non garment activities like making bags, vehicle accessories, decoration accessories, etc.
Micro Credit Scheme (MCS)
Under Micro Credit Scheme (MCS) financial assistance for Micro finance Institutions (MFI’s) will be provided to support their lending for individuals/ groups of individuals / Joint Liability Groups (JLG’s) / Self-Help Groups (SHG’s) to help them in starting or establishing micro enterprises apart from non-farm income generation activities as per MSMED Act with adherence to RBI guidelines.
Refinance Scheme for Regional Rural Banks (RRBs) / Scheduled Co-operative Banks
This is for Refinance Scheme for Regional Rural Banks (RRBs) / Scheduled Co-operative Banks helping them in enhancing their liquidity by refinancing loans up to 10 lakhs given to micro enterprises / individuals as per MSMED Act for manufacturing and service sector enterprises.
Mahila Uddyami Scheme
Mahila Uddyami Scheme is to financially support Micro Finance Institutions (MFI’s) for women / group of women / Joint Liability Groups (JLG’s) / Self-Help Groups (SHG’s), in simple words this is a women only category of Micro Credit Scheme (MCS).
Business Loan for Traders & Shopkeepers
Under Business Loan for Traders & Shopkeepers, loans up to Rs. 10 lakhs will be given for individuals or enterprises will be given to help them in running shops / trading & business activities / service enterprises and non-farm income generating activities.
Missing Middle Credit Scheme
Missing Middle Credit Scheme deals in supporting the financial intermediaries for helping the individuals or enterprises in starting up /running / expanding micro enterprises under MSMED Act with loan size between Rs. 50000 to Rs. 10 lakhs per account.
Equipment Finance for Micro Units
Within this category financial support for purchasing required equipment’s / machinery will be provided for individuals who are looking to set up micro enterprises and the maximum loan catered under this category will be Rs. 10 lakhs.
A specially designed MUDRA Card will be issued to beneficiaries with pre-approved credit limit after assessing their profiles for purchasing the goods, raw materials, components, etc., required for establishing micro enterprises from the panel of registered producers on an online platform.
MUDRA card can also be linked with Pradhan Mantri Jan Dhan Yojana Savings Account of the borrower and he/she will be able to withdraw money from bank’s ATM network for meeting liquidity issues faced by the micro enterprises.
MUDRA Interest Rates
MUDRA is an agency established to cater the needs of Financiers and help the beneficiaries (read individuals or enterprises) and the interest depends on the bank or financial institution you deal with and generally will be based on their base lending rate, to simply the interest rates will be in the range of 10-14% per annul.
Who Will Be MUDRA Beneficiaries?
Large scale of people who have no access to basic funds to start the micro niche businesses will be benefited with this scheme, to reiterate 60% of the whole funds allotted for this scheme are meant for Shishu start-up category and apart from these people small-scale manufacturing units and self-employed individuals having labor pains in scaling their production or expansion activities will be benefited under Tarun and Kishor categories.
MUDRA Scheme Contact Details
Government has given the list of Nodal Officers for Mudra Ltd whose primarily responsibility is to address the queries of the people pertaining to this scheme and the following is the list, alternatively people can also send their queries related to loans via email to firstname.lastname@example.org.
Check the embedded PDF for complete list nodal officers to get additional information about MUDRA Scheme.
I will post further details about the eligibility criteria for Mudra Scheme and process to apply for a loan under Mudra Scheme in further posts.
Between Us: If you are reading about MUDRA scheme details, I assume that you are an enthusiastic person looking forward to start-up a new venture or expand existing business, please share your ideas with people here so that our readers can discuss and share their thoughts and you may even get help in starting up your enterprise from veterans of the industry. Apart from this please shoot all your questions or concerns with respect to MUDRA scheme and I will try my best to address each of your questions.