MUDRA Yojana for Indians To Empower Micro Units

MUDRA Yojana

MUDRA Yojana NDA Government at Center led by Narendra Modi is insistent about governance reforms. Prime Minister, Narendra Modi has been visiting countries and inviting Indian Diaspora to come back home and invest here. His No Red Tape policy has made India acquire the first rank in the latest FDI list. India now is the country with highest Foreign Direct Investment.

Zero Rental Bank Account, Social Security Scheme, Pension Scheme and now Credit Card scheme, all of these collectively represents the views of a Government, which is hell bent for transformation. Narendra Modi is a man with vision and he is leaving no stone unturned in order to make India the hub of manufacturing and service sector. Narendra Modi, probably is the first Indian Prime Minister who proudly talks about Entrepreneurship. He not only talks about it but also promotes it at varied levels.

The latest Mudra Yojana is an attempt to bridge the wide gap between young, skilled entrepreneurs and the real market. Mudra Yojana is determined to provide the young and skilled entrepreneurs with the requisite fund to start and keep going through the stream.

Mudra Yojana in one statement:

Make India emerge as the hub of entrepreneurs by financially supporting the young, skilled, women or educated entrepreneurs. Small scale registered business will be provided with financial support from local banks and institutions. MUDRA Yojana

Mudra Credit Cards for Micro-Units:

In the contemporary world, where Internet has got to play an important role, it is important to see that small scale enterprises and businesses are provided with credit cards so that they can order raw materials from around the world with great ease. Making credit cards available with small-scale entrepreneurs with credit cards will leverage them with a confidence to move ahead without fear. Credit card provides these entrepreneurs with the requisite backing. The banks are working under the guidelines provided by the central government. Banks will be issuing cards to a lot of small scale enterprises in the coming time.

Enthusiastic banks and the Mudra Yojana:

Banks are enthusiastic for this Yojana. The program has benefits for banks as well as the taker of the loan/credit cards. Banks are bound to look for small-scale enterprises in their locality and then fund them with the requisite financial support. Banks will have to ensure that they are supporting at least one small-scale enterprise in their locality.

Varied types of Loan available under Mudra Yojana

1. Shishu: covering loans up to Rs. 50,000/-

2. Kishor: covering loans above Rs. 50,000/- and up to Rs. 5 lakh

3. Tarun: covering loans above Rs. 5 lakh and up to Rs. 10 lakh

Schemes would similarly be added for other sectors / activities

  1. Micro Credit Scheme (MCS)
  2. 2. Refinance Scheme for Regional Rural Banks (RRBs) / Scheduled Co-operative Banks
  3. 3. Mahila Uddyami Scheme
  4. 4. Business Loan for Traders & Shopkeepers 4. Missing Middle Credit Scheme
  5. 5. Equipment Finance for Micro Units

Providing access to institutional finance to such micro/small business units/enterprises will not only help in improving the quality of life of these entrepreneurs but also turn them into strong instruments of GDP growth and employment generation.


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