The Prime Minister of India had launched the agreed Micro Units Development & Refinance Agency Ltd is called MUDRA Bank on 8 April 2015 with the corpus (collection of written text) of Rs. 20,000 crore & a guarantee credit corpus of Rs. 3,000 crores. The launch was the satisfaction of a statement made ahead by the Finance Minister Arun Jaitley in his FY 15 to 16 Budget speech.
MUDRA Bank Difference to the Economy
Most of the individuals, particularly those living in the rural & interior parts of the India, have eliminated from the advantages or benefits of the regular banking system. Hence, they Nevermore had the way or access to credit, insurance, loans & other financial tools to aid them establish & grow their micro businesses. So, most of the people depend on the local moneylenders for the credit. The loan proceeds at high interest & frequently with unacceptable conditions, which make these poor inexperienced people fall in the debt-trap for generations. When their businesses fail or decline, the borrowers become defenseless to the lender’s strong-arm methods & different forms of embarrassment.
As per the NSSO Survey of the year 2013, there are close to the 5.77 crore small scale firms units in India, often sole proprietorships, which begin trading, retail, manufacturing, & other small-scale projects. Compare this with the associated organized sector & larger companies that operate 1.25 crore employees. Apparently, the possible to harness & sustain these micro businesses is more and vast & the government realizes this. Today, this section is unregulated & without financial help or cover from the organized commercial banking system.
MUDRA Bank Major Product Contributions:
1. MUDRA Bank has correctly classified the money borrowers into three sections: they are the beginners, the mid-stage finance seekers, & the following level growth seekers. To discuss these three segments, MUDRA Bank has started three loan tools or Kinds of Loans under the Mudra Yojana such as:
Shishu: It covers loans up to Rs. 50,000/-
Kishor: It includes loans above Rs. 50,000/- & up to Rs. 5 lakh
Tarun: It comprises loans above Rs. 5 lakh and up to Rs. 10 lakh
2. Initially, sector-specific schemes would be confined to the Community, Land Transport, Social & Personal Services, Food Products & Textile Product sectors. Over a period, new projects will be started to encompass more areas.
3. MUDRA functions as the refinancing institution by State or Regional level mediators. It refinances NBFCs or MFIs & also banks, leading lending institutions, etc.
Eligibility Criteria or Documents or certificates needed for MUDRA Loan
1. Identity proof: Self-certified copy of the Voter’s ID card, Driving License, PAN Card, Aadhar Card or Passport.
2. Evidence of residence or resident proof: Current telephone bill, current property tax receipt, electricity bill, Aadhar Card, Voter’s ID card, & Passport of Proprietor or Partners or Directors.
3. SC/ST/OBC/Minority proofs
4. Address of a Business Enterprise: Copies of appropriate licenses or registration certificates or other records of the ownership, identity, & address of the business unit.
5. Candidate should not be the delinquent in any of the Bank or Financial institution.
6. A statement or record of accounts for last six months, from the extant banker, if any present.
7. Past two years balance sheets of units along with the IT/sales tax return etc. Suitable for all the cases from Rs.2 Lacs & above.
8. Predicted balance sheets for one year in a case of working capital conclusions & for the period of a loan in the event of the term loan. Appropriate for all the cases from Rs.2 Lacs & above.
9. Sales gained during the present financial year up to the date of application submission.
10. Project report for a proposed project that should contain details of the technical & financial viability.
11. Memorandum & articles of association of the organization or Partnership, Deed of Partners, etc.
12. In the inadequacy of the third-party evidence, Asset & Liability record from the borrower comprising Directors& Partners might be asked to know the net-worth.
13. Two copies of Photographs of Proprietor or Partners or Directors.