Finance under Mudra scheme
Who gives loan under Mudra scheme?
Micro Units Development & Refinance Agency Ltd. (MUDRA) is a public sector Non-banking financial institution, launched in April 2015, which provides Re-finance facility to banks, Micro-finance institutions and other NBFCs that are engaged in providing finance/lending to small or micro enterprises. This scheme form part of the Pradhan Mantri MUDRA Yojana (PMMY).
Re-finance: MUDRA agency does not engage in direct lending to the borrower. It provides re-finance facility to financial institutions that lends to micro units.
Define micro units and Small units ?
Micro units: Manufacturing enterprise amd service sector business, whose Investment in Plant & Machinery or Equipment is not more than ₹1 Crore and Annual turnover is not more than ₹5 Crore.
Small units: Manufacturing enterprise amd service sector business, whose Investment in Plant & Machinery or Equipment is not more than ₹10 Crore and Annual turnover is not more than ₹50 Crore.
Are trading business covered under MUDRA?
Yes, Financial assistance to Non-corporate and Non-farm based business engaged in manufacturing or processing or trading or rendering of service are covered under MUDRA.
Features
a) Age of borrower : Minimum 18, Maximum 65
b)Financial assistance under MUDRA is available upto Rs. 10 lakh, collateral free.
c) specific documents required to be submitted apart from normal documents: 2 Year ITR, Proof of continutity of business, CA certified financials, bank statement of past 6 months.
d) Purpose of availment: Mudra loan can be availed for vehicle purchase, working capital requirement, or for capital expenditure requirements of business.