Recent Program - Mudra Bank Yojana For Bank Exam

Mudra Bank – Details, Objectives & Benefits

The Prime Minister Narendra Modi  launched the promised Micro Units Development and Refinance Agency Ltd (MUDRA) Bank on 8 April, 2015 with a corpus of Rs 20,000 crore and a credit guarantee corpus of Rs 3,000 crore. The launch was the fulfillment of an announcement made earlier by the Finance Minister Arun Jaitley in his FY 15-16 Budget speech.

MUDRA Bank has rightly classified the borrowers into three segments: the starters, the mid-stage finance seekers and the next level growth seekers.
To address the three segments, MUDRA Bank has launched three loan instruments:

1. Shishu: covers loans upto Rs 50,000/-
2. Kishor: covers loans above Rs 50,000/- and upto Rs 5 lakh
3. Tarun: covers loans above Rs 5 lakh and upto Rs 10 lakh

                                  Beneficiaries

Mudra Bank Beneficiaries would be Small or Medium Business or Entrepreneurs in rural and urban areas having financing requirements up to Rs.10 lakh, including proprietorship/partnership firms running as small manufacturing units, shopkeepers, fruits/vegetable sellers, hair cutting saloon, beauty parlours, transporters, truck operators, hawkers, co-operatives or body of individuals, food service units, repair shops, machine operators, small industries, artisans, food processors, self-help groups, professionals and service providers etc.

Responsibilities of Mudra Bank

• Laying down policy guidelines for micro/small enterprise financing business.
• Registration and Regulation of MFI (Micro-Finance Institutions) entities.
• Accreditation/rating of MFI entities.
• To assist the lower income groups to develop and grow their small businesses.
• To help in increasing the access of finance to the un-banked and to also bring down the cost of finance.
• To provide access to Institutional Finance for Small Business Units (SBU).
• Laying down responsible financing practices to prevent over indebtedness, ensuring client protection principles and methods of recovery.
• Development of standardized covenants governing last mile lending to micro/small enterprises.
• Formulating and running a credit guarantee scheme for providing guarantees to the loans which are being extended to micro-enterprises.
• MUDRA bank will also be responsible for regulating and refinancing all micro-finance institutions (MFIs) which are in the business of lending to micro or small business entities engaged in manufacturing, trading and services activities.
• To give priority to SC/ST enterprises in lending.