PM Narendra Modi launched the Rs 20,000 cr MUDRA Bank today. When spelled out in full form MUDRA Bank is Micro Units Development Refinance Agency. Here are 10 top points about the bank:
1. MUDRA Bank will provide credit of up to Rs 10 lakh to small entrepreneurs and act as a regulator for ‘Micro-Finance Institutions’ (MFIs).
2. The roles envisaged for MUDRA include laying down policy guidelines for micro enterprise financing business and registration of MFI entities as well as their accreditation and rating.
3. There are about 5.77 crore small business units.
4. Among others, MUDRA would benefit small manufacturing units, shopkeepers, fruits and vegetable sellers, hair saloon, beauty parlours, truck operators, hawkers, artisans in rural and urban areas with financing requirements up to Rs 10 lakh.
5. MUDRA has a corpus of Rs 20,000 crore, and credit guarantee corpus of Rs 3,000 crore.
6. The initial products and schemes that have been created have been named ‘Shishu’, ‘Kishor’ and ‘Tarun’ to signify the stage of growth/development and funding needs of the beneficiary micro unit/entrepreneur.
7. Shishu would cover loans up to Rs 50,000 while Kishor above Rs 50,000 and up to Rs 5 lakh. Tarun category will cover loans of above Rs 5 lakh and up to Rs 10 lakh.
8. MUDRA is to be set up through a statutory enactment. It would be responsible for developing and refinancing through Pradhan Mantri MUDRA Yojana.
9. MUDRA would also partner with state/regional level coordinators to provide finance to “Last Mile Financiers” of small/micro business enterprises.
10. Measures to be taken up by MUDRA are targeted towards mainstreaming young, educated or skilled workers and entrepreneurs including women entrepreneurs.
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