1. INDIAN INSTITUTE OF TECHNOLOGY ROORKEE
MUDRA YOJANA
Prepared by :- AVINASH KUMAR PASWAN
www.mudra.org.in
2. 2
POINT COVERED
SR. NO . PARTICULARS
1. Introduction
2. What is MUDRA Loan Bank ?
3. Categories of loan
4. How to apply for loan ?
5. Who are eligible for loan under MUDRA Loan Yojna?
6. What are the benefits of MUDRA Loan Yojna?
4. 4
INTRODUCTION
The current policy of Prime Minister Narendra Modi
is quite focussed on developing the indian economy.
• Jan Dhan Yojna was born out of this objective of PM
and under this yojna ,PM Narendra Modi had
launched the micro unit development and refinance
agency or MUDRA BANK on 8th april,2015.
• Formally launched in 2015 union budget of India,
the mudra scheme or Pradhan Mantri Mudra Yojna
was aimed to providing financial support to the
small scale entrepreneur located in remote area ,or
outside the area of banking.
6. 6
What is a MUDRA loan?
• MUDRA stands for ‘Micro Units Development and Refinance
Agency Ltd”.
• Idea: Organization set up and initiated by Prime Minister
Narendra Modi.
• Goal: “Fulfilling all the Funding needs of Non Corporate
Small Business.”
• Loan Under The Pradhan Mantri Mudra Yojna (PMMY)
Scheme: Financing and refinancing options for micro
finance institutions and small business sectors.
• Aim: Help Entrepreneurs, start-ups restricted by a sufficient
budget for running business.
7. 7
3 Types of Mudra Loans available, They are
1. Shishu Scheme
2. Kishore Scheme
3. Tarun Scheme
8. 8
Shishu Scheme
• This category is for the Start ups. All those businesses that
have been just started and looking for Loan will fall in this
category.
• Maximum loan amount: to Rs. 50,000
• No loan processing charges
• Interest Rate: 1% per month
• Maximum Loan Repayment Tenure: up to 5 years
9. 9
Kishore Scheme
• This one is for those who have started their business but it
has be established yet.
• Minimum Loan Amount: Over Rs. 50,000
• Maximum Loan Amount: up to Rs. 5 lacs.
10. 10
Tarun Scheme
• For entrepreneurs with established micro business units but
would want for funding or investment for expansion of the
business.
• Minimum Loan Amount: Rs. 5 lacs
• Maximum Loan Amount: up to Rs. 10 lacs
11. 11
How to Apply Mudra Loan
• Firstly, approach any of those bank that are listed by the
scheme.
• Then provide complete business detail.
• Categorisation of your business into mention three
categories.
• Then filling up the Mudra form for loan, along with current
account opening in the bank.
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Eligibility to Attain MUDRA Loan.
• Loan applicant must be an indian citizen, unlike other banks
mudra bank offers loan for indian citizen.
• Loan can be available only for micro or small scales
businesses from rural area.
• Proper proof for IDENTITY,RESIDENCE along with two set
of Proprietor/Partner/Director photos.
• Loan amount should be quoted under the maximum limit of
RS 10,00,000.
14. 14
What does MUDRA Bank Yojna Aim for ?
• Stabilizing Indian’s Micro finance sector via inclusive
participation and regulation.
• Aiding Agencies and microfinance institution by extending
credit support.
• Maintaing a registered record of MFIs and agencies for first
time ever in history.
• Offering structure guideline to borrowers to prevent business
failure.
• Introduction and Implementation of technological support.
• Development of standard prootocals.
15. 15
Interest rate of MUDRA Loan
• If loan availed under MUDRA SHISHU up to 50,000 then
normal rates around 10%-12% interest are charged.
• If loan availed under MUDRA KISHORE up to 5,00,000
which comes under unsecured loan so interest rates would
be in between 14%-17%.
• If loan availed under MUDRA TARUN with the margin of 5L
to 10L , interested will be at high end start from 16% and
varies from bank to bank.
16. 16
Disadvantages of MUDRA Banks
• The problems on our economy.
• Financing agencies like NABARD,SIDBI are not functioning
good.
• MUDRA Bank promotes Shadow Banking.
17. 17
Impact on Indian economy
• Increased entrepreneurial success will immediately boost
GDP of demographic region where the business located.
• Increased business success will mean increased
employment and increased demand for good and service.
• Increased demand in return stimulates the manufacturing
segment of the economy and supply of goods
• More spending powers in hand of general populace.
18. 18
Which sector will be covered by MUDRA Yojna
S.NO. SERVICES
1. LAND TRANSPORT
2. TEXTILE PRODUCT
3. FOOD PRODUCT
4. SOCIAL,PERSONAL &COMMUNITY
SERVICE
19. MUDRA loan VS PERSONAL loan
MUDRA LOANS
• Only for business purpose.
• Governance by government.
• Interest rate 10%-16%.
• Credit in form of MUDRA
cards.
PERSONAL LOANS
• Universal types of loan.
• Availed by both public and
private banks.
• Interest rate 11%-22%.
• Credited to personal
account.
