Micro Units Development and Refinance Agency Limited or MUDRA is a flagship initiative of the Indian Government aiming to provide funds to various businesses in a rural and urban area of the country. MUDRA loan was announced on 8th April 2015, and by the financial year of 2018-19, this policy has managed to sanction almost 6 crore loans.
Impact of MUDRA Loan –
- Job creation
- Shishu – 66%.
- Kishore – 18.85%.
- Tarun – 15.51%.
- Entrepreneurship creation
- Growth of women entrepreneurship
- First-time loan borrowers
- Establishing vs. expanding
- Shishu – This loan is applicable for the entrepreneurs who are starting their business. The only norms under this policy are that the borrower has to provide supplier details and valid quotations. By meeting the essential eligibility criteria, an individual can avail up to Rs.50000.
- Kishore – The second type of loan an individual can under the provision of Pradhan Mantri MUDRA Yojana is Kishore. Entrepreneurs who want to expand their business can apply for this loan. By fulfilling a few terms and conditions, an entrepreneur can avail from Rs.50001 to Rs.5 lakh.
- Tarun – The third category of MUDRA Loan is called Tarun. An entrepreneur of an established business aiming to expand it further can avail advances under this category. The highest amount of sanctioned in this category is up to Rs.5 lakh.
- Vegetable and fruit sellers.
- Small manufacturers.