Details about Indian business promoting subsidies. It contains everything about the Mudra Yojana scheme that is entrepreneur funding from the government.

1. Topic : Start Up India
MUDRA YOJANA

2. Start Up India MUDRA YOJANA
MUDRA provides refinance support to Banks / MFIs for lending to micro units
having loan requirement up to 10 lakh. MUDRA provides refinance to micro
business under the Scheme of Pradhan Mantri MUDRA Yojana. The other
products are for development support to the sector. The bouquet of offerings of
MUDRA is depicted below.

3. Pradhan Mantri MUDRA Yojana
(PMMY)
Pradhan Mantri MUDRA Yojana (PMMY) is a scheme launched by the Hon’ble Prime
Minister on April 8, 2015, for providing loans up to 10 lakh to the non-corporate, non-farm
small/micro enterprises. These loans are classified as MUDRA loans under PMMY. These
loans are given by Commercial Banks, RRBs, Small Finance Banks, MFIs and NBFCs.
Under the aegis of PMMY, MUDRA has created three products namely
1. Shishu’
2. Kishore’
3. Tarun'

4. Pradhan Mantri MUDRA Yojana
(PMMY):
The three Products are created to:
to signify the stage of growth / development and funding needs of the beneficiary
micro unit / entrepreneur and provide a reference point for the next phase of graduation
/ growth.
Aiming to promote entrepreneurship among the youth and nurture the expansion of
the startup ecosystem across the country, the government focusses more on Shishu-
category business units.

5. Pradhan Mantri MUDRA Yojana
(PMMY):
MUDRA Vision
To be an integrated financial and support services provider
par excellence benchmarked with global best practices and
standards for the bottom of the pyramid universe for their
comprehensive economic and social development."

6. Pradhan Mantri MUDRA Yojana
(PMMY):
MUDRA Mission
To create an inclusive, sustainable and value based
entrepreneurial culture, in collaboration with our partner
institutions in achieving economic success and financial security.

7. Types Of Mudra
Loan For Start-
ups
1. Shishu
This loan is provided to start ups in their initial years and can be furnished up to
an amount of INR 50K. This is usually used to meet capital costs on infrastructure,
set up, equipment or bulk purchases of raw materials to start the business.

8. 1. Kishore
This category of Mudra loans in the bracket of INR 50K to INR 5 Lakh is aimed at
increasing capital or expansion of business by the entrepreneur of an enterprise in
its growth years.

9. 1. Tarun
Fund requirements over INR 5 lakh, but under INR 10 lakh fall under the final
category.

10. Achievements Under PMMY Since
Inception

11. Achievements Under PMMY Since
Inception

12. Achievements Under PMMY Since
Inception

13. Achievements Under PMMY Since
Inception

14. Achievements Under PMMY Since
Inception

15. Achievements Under PMMY Since
Inception

16. Achievements Under PMMY Since
Inception

17. Achievements Under PMMY Since
Inception

18. MUDRA Offering

19. The funding support from MUDRA
are of two types:
1. Micro Credit Scheme (MCS) for loans up to 1 lakh finance
through MFIs.
2. Refinance Scheme for Commercial Banks / Regional Rural
Banks (RRBs) / Small Finance Banks / Non-Banking Financial
Companies (NBFCs).

20. Micro Credit Scheme
Micro Credit Scheme is offered mainly through
Micro Finance Institutions (MFIs), who deliver the
credit up to 1 lakh, for various micro enterprise /
small business activities. Although the model of
delivery may be through SHGs/JLGs/ Individuals,
the loans are given by the MFIs to individual
entrepreneurs for specific income generating
micro enterprise/ small business activities.

21. Refinance Scheme for Banks/NBFCs
Different banks like Commercial Banks, Regional
Rural Banks, Small Finance Banks and NBFCs are
eligible to avail of refinance support from MUDRA
for financing micro enterprise activities. The
refinance is available for term loan and working
capital loan up to an amount of 10 lakh per unit.
The eligible banks/NBFC, who comply to the
requirements as notified, can avail of refinance
from MUDRA for the loans given by them for
eligible MUDRA compliant activities under Shishu,
Kishore and Tarun categories.

22. Purpose of Mudra
Loans
1. Business loan for Vendors, Traders, Shopkeepers
and other Service Sector activities
2. Working capital loan through MUDRA Cards
3. Equipment Finance for Micro Units
4. Transport Vehicle loans – for commercial use
only
5. Loans for agri-allied non-farm income
generating activities, e.g., pisciculture. bee
keeping, poultry farming, etc.
6. Tractors, tillers as well as two wheelers used for
commercial purposes only.

23. Development and
Promotional Support
Besides the credit constraints, the Non-
Corporate Small Business (NCSBS) face many non-
credit challenges, like,
1. Skill Development Gaps
2. Knowledge Gaps
3. Information Asymmetry
4. Financial / Business Literacy
5. Lack of growth orientation

24. Imparting Financial /
Business Literacy

25. How Start ups Can
Avail The
Government’s Mudra
Loans In India
1. The offerings of Mudra loan for start ups
are in the form of term loans and working
capital loans
2. Start ups and entrepreneurs need to
apply to banks, NBFCs or MFIs
3. Funding requirements up to INR 10 lakh
fall under government's Mudra loans

26. Thank you
Question ?