PRADHAN MANTRI MUDRA YOJANA

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PRADHAN MANTRI MUDRA YOJANA:

                            MUDRA- Micro Units Development and Refinance Agency .MUDRA  is announced by Financial Minister while presenting the Union Budget for the Financial Year 2016.

PURPOSE OF MUDRA YOJANA:

          The purpose of MUDRA is to provide funding to the non corporate small business sector.^[1] Loans worth about Rs 1 lakh crore have been sanctioned to small entrepreneurs under the Pradhan Mantri MUDRA Yojana.

CATEGORIES OF PRADHAN MANTRI MUDRA YOJANA:

          Under the scheme, Pradhaan Mantri Mudra Yojana three categories of interventions has been named which includes

1. Shishu :- Loan up to 50,000 (US$780)
2. Kishore :- Loan ranging from 50,000 (US$780) to 5 lakh (US$7,800)
3. Tarun :- Loan above 5 lakh (US$7,800) and below 10 lakh (US$16,000)

WHAT IS MUDRA LOAN:

Loans given to non-farm income generating enterprises in manufacturing, trading and services whose credit needs are below Rs.10 lakh by all the Public Sector Banks, Regional Rural Banks, State Cooperative Banks and Urban Co-operative Banks will be known as MUDRA loans under the Pradhan Mantri MUDRA Yojana (PMMY). All such loans can be covered under refinance and/or credit enhancement products of MUDRA.

MUDRA has enrolled 27 Public Sector Banks, 17 Private Sector Banks, 27 Regional Rural Banks and 25 Micro Finance Institutions (MFIs – list as per Annexure I) as partner institutions for channelizing assistance to the ultimate borrower

FOR ANY ASSISTANCE :

Borrowers,who wish to avail assistance can contact the above mentioned institution in their Region

MUDRA has identified 97 Nodal Officers at various SIDBI Regional offices/Branch Offices to act as “first contact persons” for MUDRA.

For information on MUDRA products and for any kind of assistance, the borrower can either approach/contact MUDRA office at Mumbai or the identified MUDRA Nodal Officers, whose details  are made available at MUDRA’s Website.

ELIGIBILITY CRITERIA FOR PARTNER INSTITUTIONS:

SCHEDULED COMMERCIAL BANKS

           1.Public Sector Banks:

Should have earned profit during the last 2 years failing which minimum external rating of long term instruments not below A-(minus) from accredited credit rating agencies.

Level of Net NPAs not exceeding 15%

2.Private Sector Banks:

Should have earned profit during the last 2 years failing which minimum external rating of long term instruments not below A-(minus) from accredited credit rating agencies.

Level of Net NPAs not exceeding 3%.

3.Regional Rural Banks:

Should have earned net profit for preceding two years.

Level of Net NPAs equal to or less than 6%.

URBAN CO-OPERATIVE BANKS

Should have been in operation for a period of 3 years.

Net Profit for atleast three out of the preceding four years subject to not having incurred a net loss in the immediate preceding year

STATE CO-OPERATIVE BANKS

Net NPA upto 10% as on last audited statement.

Should have earned net profit during the last 2 years.

MICRO FINANCE INSTITUTIONS

Should be a registered legal entity lending to micro units meeting the loan size criteria of MUDRA (which is presently loan size of Rs.1 lakh or as stipulated by RBI from time to time) for atleast 3 years or the promoters /management should have an experience of atleast 10 years.

Having a minimum outreach of 3000 existing borrowers.

NON BANKING FINANCE COMPANIES (NBFCs):

LARGER NBFCs i.e. Assets size > Rs.500 crore

The NBFC should be registered with RBI as Asset Finance Company (AFC) or Loan Company. In respect of NBFC-Loan Company, a CA certificate that if the loan is given for income generating activities, 60% of the income comes from productive assets should be furnished.

NBFC should have been in business for 5 years and should have earned Net Profit for last 3 years. In case of the NBFCs financing second hand vehicles, the NBFC needs to have experience of 3 years in the activity and also have recorded profit during the period.

SMALLER NBFCs i.e. Asset size less than Rs.500 crore

The NBFC should be registered with RBI as Asset Finance Company (AFC) or Loan Company. In respect of NBFC-Loan Company, a CA certificate that if the loan is given for income generating activities, 60% of the income comes from productive assets should be furnished.

Should have been in business for 5 years (relaxable upto 3 years) and earned Net profit for last 3 years. In case of the NBFCs financing second hand vehicles, the NBFC needs to have experience of 3 years in the activity and also have recorded profit during the period. Preference may be given to NBFCs enjoying well conducted credit facilities from Scheduled Commercial Banks

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