Pradhan Mantri Mudra Yojana, under the Micro Units Development and Refinance Agency (MUDRA) Bank is a new institution being set up by Government of India for development and refinancing activities relating to micro units. It was announced by the Finance Minister while presenting the Union Budget for financial year 2016. The purpose of MUDRA is to provide funding to the non corporate small business sector.Loans worth about Rs 1 lakh crore have been sanctioned to small entrepreneurs under the Pradhan Mantri MUDRA Yojana, Prime Minister Narendra Modi said today, emphasising that the government wants youth to be job creators and not job seekers.
- To provide loan for growth and development of the beneficiary.
- The business unit should be either one of the following:
a) Small manufacturing unit
c) Fruit and vegetable vendors
With the growth stage of the venture taken as a basis of classification, the approaches to development strategy and funding requirements for these has been put into 3 categories:
- Shishu category : Features exclusive structure designed for start-ups in need of financial support up to the amount of Rs. 50,000.
- Kishore category : Here the small ventures that have had business operations in the past but are yet to be officially established are focused upon and helped with loans from Rs. 50,000 to Rs. 5 lakhs.
- Tarun category : This division looks after the business enterprises that are fully established and functioning but do lack a prominent financial foundation to fall back on the business deals with loans extended from Rs. 5 lakhs to Rs. 10 lakhs.
- Repayment of the loan is more than 7 years.
How to apply:
- One can directly approach to the bank which is listed under Mudra Yojana.
- Share you business idea or have a copy of the business proposal and bank will give “Mudra Yojana Form”.
- If you need any equipments for your business then carry invoice for the same.
- Apply through the form and avail loan.
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