May 052016
 

MUDRA Bank Loan Scheme | Hindi | Apply 

In India, unemployment has been a problem for ever and so there have been many schemes and programs initiated by the government so as to give more employment to the people of the country. Yet again the Finance Minister of India, Arun Jaitley, announced the MUDRA Scheme in the 2015-16 budget and on April 8th, 2015, the Prime Minister of India, Narndra Modi launched the MUDRA scheme which stands for Micro Units Development and Refinance Agency Ltd. The scheme was initiated by Modi so that in India there are less of job seekers, and more of job creators.

  • Objective / Aim of MUDRA Yojana

The MUDRA Yojana aims to set up an institution which would regulate the other financial units to lend money and other financial support to the micro units. It would aim to promote and support all the small scale businesses so that they can grow and generate more employment. Under this scheme the small scale businesses can apply for loans and the banks registered under the scheme can lend loan to the loan seekers. So of the main objectives of the Yojana are-

  • The MUDRA bank would be in charge of regulating and managing all the lending and borrowing process that takes place in between the banks and the business owners. Along with this the MUDRA is also supposed to lend financial support to the small scale business owners and aspiring entrepreneurs.
  • The body is responsible of laying out a guideline that would help the bank and the loan seekers to go through the whole process smoothly and also aim in the benefit and the development of the businesses.
  • The MUDRA bank will act as the backbone to all the transactions and procedures that take place under this scheme and make sure that it is carried out in a just way. It should provide full support to the micro-financing bodies so that they are able to provide the required loan ti the loan seekers.
  • The body should introduce the right technology so as to make the process of applying loans and getting loans becomes convenient and the monitoring process also becomes easy.

MUDRA Loan Yojana features-

  • The MUDRA scheme is supposed to benefit around 58 million small scale business owners and also many of the aspiring entrepreneurs so that they can have a bright present and future.
  • Most of the small scale businesses are not able to avail the benefits and support of the financial institutions due to different problems, buy this yojana is said to break that boundary.
  • Most of the banks are reluctant when it comes to providing loans to the small scale business, as they feel there is a risk of getting the money back. They tend to prefer large scale businesses. But with the launch of the Mudra Yojana this problem will be solved to a great extent.
  • Banks also avoid the small scale products and services and want to invest or lend their money on something better, thus avoiding the small scale businesses, the Mudra Yojana targets to give importance to the small scale products as well.
  • With the loan and credit options opening and readily available to the business owners, more and more people would be encouraged to open up their small business and becoming self-employed.
  • SC ST, OBC and women will be preferred for this loan initialed so as to uplift them. But then there is no fixed reservations that is mentioned.

Under the Pradhan Mantri MUDRA Yojana, the small scale businesses have been divided into three categories which are-

Category 1 Category 2 Category 3
The first type of business would be called the Shishu The other type of business category would be the Kishor category The third kind of micro business would be the Tarun
All the new business which are at a primitive stage would fall under this category. The business that have started some time back but are yet to establish would be taken under this category The businesses who have established themselves but need some financial help would belong to this category
They would need loan to kick start their business They would need fund to establish their business They would require money to grow their business.
The maximum amount given to them would be up to Rs.50000 The maximum amount to be Rs.5 lakhs For this category the maximum amount would go up to Rs.10 lakhs

MUDRA Loan Eligibility Criteria 

In order to avail the benefits and to apply for loan under the MUDRA Yojana, the person or the business has to fulfill these criteria-

  • The loan under this Yojana is to be provided to only smallscale businesses who fall under one of the following types of businesses- Shishu, Tarun and Kishor. Apart from this there is no such major criteria that you have to fulfill
  • A loan will not be provided to a person or a business who has a high turnover from his or her business. Also you have to apply and use the money for a business that is existing or is about to exist. You cannot take a personal loan, educational loan or a car and bike loan under this scheme.

In case you want to be a lender under this scheme then the bank or the micro-financing unit has to fulfill the following criteria-

  • In case of a schedule commercial bank, then the bank is supposed to have a profitable track record for the past 3 years and should also have a net NPA which is within 3%. The CRAR should also be not less than 9%, if these criteria are fulfilled, then you can be a micro-financing unit under this Yojana.
  • For all the regional rural banks to lend money under this scheme, they should have a NPA not more than 3% and should be a profitable bank. It should also CRAR which is less than 9%.

How to apply for a loan under MUDRA Loan scheme

If you are an owner of a small scale business or if you want to start a business, then you just need to do the following things-

  • First and foremost you need to be clear that unlike other loans you cannot just apply for a loan for your business and get it done. You need to have a proper business plan against which you can apply for a loan in the banks that are registered under this scheme.
  • Once you have the plan you can go to the nearest bank that is registered to lend money under this scheme and then collect an application form. Fill up the details in the form and then along with the form, you need to submit your business plan and the other required documents such as identity roof, passport size photo, etc.
  • If all the documents and the business plan is approved, the loan will be sanctioned and will be provided to you.

You can also apply online for a loan or a financial help from the registered banks. You just need to download the application form that is available in many website, fill it and then submit t with the all the proofs and your business plan, online.

MUDRA Loan Application Form (SBI, BOI)

The application form of each of the banks listed under the scheme is available online in the respective banks website. Or you can just type ‘Mudra application form SBI’, for example in order to get the form. Apart from this the forms are available in all the registered banks. For both Bank of India (BOI) and State Bank of India (SBI)are available in the bank as well as their online websites. You can fill your application online and then submit it along with the other required details that is mentioned.

Documents required for applying 

The documents that will be required in order to apply for loan under this Yojana are listed below-

  • You would need an attested Identity proof such as a voter ID card or a Driving license or an Aadhar card, etc. And also need to give a residence poof such as telephone bill or Voter ID OR Passport or any bank statement.
  • You would also need to provide a quotation of the machinery and the other things that you will purchase for your business. You need to give the name of the supplier and the details of the machinery like the price, etc.
  • You need to give an identity proof of your business like a registration document copy or license, etc. And along with this you need to give a proof of you caste such as schedule caste, tribe, OBC or minority, if you belong to any.

You do not need a guarantor for this loan.

Interest Rate and Tax Exemption Under MUDRA Loan

  • One big concern with loans is surely the rate of interest. But then for loan under this scheme, there is no specific interest rate that is mentioned. The interest rate charged would be totally depended up on the kind of business that you have.
  • Each of the banks registered under this scheme can have their own criteria for fixing an interest rate. In future the government is said to give a certain amount of subsidy but the amount or percentage is not yet decided.
  • Also there has been nothing specific mention about the tax rate so on needs to wait until the tax exemption rate is announced under this scheme.

Loan Duration and Loan Return Policy under MUDRA Yojana

  • The MUDRA bank is responsible of regulating proper lending and as well as recovering the money that has been lent. It should ensure that all the money that is lend is returned at the right time
  • Under this scheme the person who has taken a loan for his micro business, will be given a 5 to 7 years tenure with in which he or she needs to repay the loan money to the bank.

List of banks registered under this Yojana

There are a number of banks that have the eligibility ty of actually lending money and support to the loan seekers under this scheme. Some of the banks would include- SBI, State bank of Mysore, Hyderabad, Travancore, Jaipur, Patiala, United Bank of India, UCO bank, Syndicate bank, Punjab Bank, Indian Overseas banks, Corporation bank, Bank of Maharashtra, Canara Bank, Bank of India, ICICI bank, Allahabad bank, Andhra banks, etc.

Benefits of the MUDRA Loan Yojana

There are many benefits of the Mudra scheme, some of it are listed here-

  • The Yojana will empower the people who want to start a business or have a small scale business, they can actually grow their business with adequate financial help from the scheme
  • The scheme would ultimately decrease the rate of unemployment and then lead to the higher revenue of the country, thus ending to the development of the country as a whole.
  • Getting capital invest for starting business in India is quite difficult and that is also where the MUDRA loan can come handy. It will basically promote entrepreneurship.
  • There are many remote areas in the country where setting up business becomes impossible as there is to financial body to help them, but then with this scheme, this problem would be met. More and more remote areas can be turned profitable by this scheme.
  • The Mudra banks also provide a Mudra card which would basically function as a credit card and allow people to make use of it in times of immediate need. The helplessness factor during the time of emergency in a business will be dealt with.
  • There are many small scale business which are in the verge of closing due to lack of financial support, but with the introduction of this Yojana, small scale businesses need not close, they can instead grow.
  • The economy of the country would be affected in a good way leading to the progress and the empowerment of the country and its people.

Disadvantages of  Mudra Yojana

Here are some of the disadvantages of the Mudra Yojana-

  • The RBI would not be the controlling body for the Mudra bank, so the Mudra bank will be prone to different risks as the bank grows. Also having two regulatory bodies in the country (RBI and MUDRA) would cause more confusion
  • There is no mention about the time that will be taken to process the loans, and plus the collaboration with the Post Offices to distribute loans, would mean that it would be a slow process.
  • It is not clearly mentioned that if the MUDRA Bank is a bank or a regulatory body. The busy is responsible of too many things which may lead to a conflict.
  • The scheme does not mention that what happens to the businesses which started as a micro unit but eventually grow bigger, would they still be eligible for loans under the scheme or not.

Mudra Loan Yojana Scheme helpline

In case you are an aspiring entrepreneur or a micro business owner and you want assistance in any of the finical matters and want to apply for loan, you may also seek for assistance by visiting the nearby branch which is registered or you may email at the helpline id- help@mudra.org.in or dial National wide toll free number 1800 180 1111 / 1800 11 0001. Official Site Mudra Yojana.

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