Central Government launches Mudra Bank as promised in the Budget with a corpus of Rs. 20, 000 Crores.
Mudra bank or Micro Units Development and Refinance Agency, being one of Modi's pet projects had hogged the limelight with its catchy slogan-To fund the unfunded- when it was announced in the Budget in February this year.
A Mudra Bank's primary objective is to fund small business undertakings.
The ticket size of the loan can extend up to Rs 10 L(50K ~ 10L) consequently Mudra Bank with its present corpus size can help a minimum of 2L small business undertakings in India. Assuming, a SBU, employs 10 people on an average, MUDRA is set to benefit at least 20L families, if everything goes according to the plan on paper. However, the government has more optimistic estimate of the beneficiaries- the government pegs the number at a whopping 5.77 Crore u/t's.
Under this scheme, three types of loans will be granted-
Shishu- A new business. Ticket Size: ~50K
Kishor- Ticket Size: 50K ~ 5L
Tarun- Upto 10L.
Apart from financing, MUDRA also provides credit guarantee facilities and has a Credit Guarantee Fund of 2000 Cr( 3000 Cr as per the Hindu).
The Cost of Finance is going to be very cheap making the borrowing economically viable for the very small businesses. Also, the norms have been diluted to make the prerequisites less rigid and thus the borrowing is set to become a much hassle free process for the hitherto unfunded.
MUDRA has tied up with the Indian Post to extend its reach to the remotest node of the country. Like every large scheme, this scheme also, prioritizes lending to the SC and ST.
A Mudra Bank's primary objective is to fund small business undertakings.
The ticket size of the loan can extend up to Rs 10 L(50K ~ 10L) consequently Mudra Bank with its present corpus size can help a minimum of 2L small business undertakings in India. Assuming, a SBU, employs 10 people on an average, MUDRA is set to benefit at least 20L families, if everything goes according to the plan on paper. However, the government has more optimistic estimate of the beneficiaries- the government pegs the number at a whopping 5.77 Crore u/t's.
Under this scheme, three types of loans will be granted-
Shishu- A new business. Ticket Size: ~50K
Kishor- Ticket Size: 50K ~ 5L
Tarun- Upto 10L.
Apart from financing, MUDRA also provides credit guarantee facilities and has a Credit Guarantee Fund of 2000 Cr( 3000 Cr as per the Hindu).
The Cost of Finance is going to be very cheap making the borrowing economically viable for the very small businesses. Also, the norms have been diluted to make the prerequisites less rigid and thus the borrowing is set to become a much hassle free process for the hitherto unfunded.
MUDRA has tied up with the Indian Post to extend its reach to the remotest node of the country. Like every large scheme, this scheme also, prioritizes lending to the SC and ST.
No comments:
Post a Comment