Mudra Yojana is a credit scheme launched by government of India for providing credit to small cap businesses

1. Launched in 2015, It is for providing loan for small capital businesses to
increase investment in business and increase employment opportunities

2. THE GIST
 There are 577 core small businesses in country
 Many more micro institutions and start ups
 It is for providing micro finance to small industries
 helps to Micro, Small and Medium Enterprise (MSME) Sector
 Helps to lower income group to develop
 Easy access to Finance
 Preference to weaker sections of society

3. PROCEDURE
Small
Enterpreneur
All
Scheduled
Commercial
Bank
MUDRA
Bank
Micro
Finance
Institutions
Regional
Rural Banks
MUDRA
Card
Credit
Limit upto
10% of
Loan
Loan

4. DOCUMENTS REQUIRED
 Duly filled application form
 Identity Proof with 2 Photographs
 Quotation of Items & Machinery to be purchased
 Details of Suppliers and machineries
 Identity of Ownership of business
 Proof of Category like SC/ST
 Primary security like personal guarantee of promoters

5. BENEFITS YOU GET
 No necessary collateral
 Only 1% interest rate
 Doubled the previous lending target to Rs.2.44 lakh crores
 Lot of benefits to women, Minorities and Backward Classes
 Income tax for MSMEs has reduced to 25% for yearly INR 50
crores or more turnover

6. LOANS AVAILABLE
 Shishu: Provides loan of Rs.50000 to small businesses with no margin
 Kishor: Amount ranges from Rs.50000 to Rs.5 Lac with 15% margin
 Tarun: Amount ranges from Rs. 5 Lacs to Rs.10 Lacs with 15% margin
Vehicle Loan, Business Installment Loan(BIL),
Business Loans Group Loans(BLG), Rural Business
Credit(RBC)
Maximum 36 months for Demand Loan, 84 months for term loan

7. ANALYSIS OF OVERALL PERFORMANCE OF
YEAR 2016-17
 General Category People were sanctioned nearly equal
amount in Shishu & Tarun, but higher for Kishor
 SC/ST and Women have demanded higher loans under
Shishu, showing lower repayment capacity or awareness
 In 2016-17, Amount sanctioned was Rs.180528 Crore and
amount disbursed was Rs.175312 crore, thus disbursement
is satisfactory