Pradhan Mantri Mudra Loan Scheme 2021

The visionary government of Narendra Modi has also launched a scheme of financial assistance to develop and encourage the spirit of business and employment. The name of this scheme is Mudra Yojana (Micro Units Development Refinance Agency). Through this scheme, the government has targeted to encourage the youth who want to start a new business as well as provide finance at affordable interest rates to the unorganized sector businesses and small businesses facing financial problems.

It is worth mentioning in this regard that till now a large section of the country’s population, especially the lower strata, has been deprived of the benefits of the formal banking system. They depend on moneylenders for everything from farming to doing small business. They have to pay huge interest on loans taken from moneylenders. Then they get caught in such a maze of debt that their life becomes difficult. On the other hand, small business units of the country are also facing a similar problem. Till now there was neither any regulatory body nor any banking system for such units from which they could get financial support. In the 2013 survey of the National Sample Survey Office (NSSO), an organization of the Ministry of Indian Statistics, Government of India, it has been said that there are about 577 million small business units in the country and whose control is under sole proprietorship. These units include activities ranging from production to manufacturing and retail. Also, about 1.25 crore people are getting employment directly and indirectly from these units. In such a situation, it was necessary that the government should bring such a visionary plan, which would not only provide financial support and strength to the small business units, but also generate employment.

Ultimately, cherishing the ambition of strengthening and exploiting these small business units, the Finance Minister of the present Narendra Modi government, Arun Jaitley, had announced the establishment of Mudra Bank in the budget speech of 2015-16. After this, implementing the government’s promise, Prime Minister Narendra Modi on April 2015 with a corpus of Rs 20,000 crore, Micro Units Development and Refinance Agency Limited i.e. ‘Posture‘ Dedicated the loan to the nation. A loan guarantee fund of Rs 3,000 crore has also been added to this huge fund.

This agency, newly created by the government, will cooperate with all those financial institutions which carry out the business of giving loans to micro and small business units engaged in production, trading and service related activities.

Main Purpose of Pradhan Mantri Mudra Loan Yojana (Pradhan Mantri MUDRA Loan Yojana Aim In Hindi)

• To strengthen the regulation and active participation of the institutions providing micro finance in the form of loans and its financial system and to provide stability to it.
• To cooperate in finance and credit activities to other agencies including micro financial institutions which provide loans to small businessmen, shopkeepers, self-help groups etc.
• To register all existing Micro Financial Institutions (MFIs) and make a merit list based on their performance. This list will help in assessing the record of the institution and help the borrowers to choose the best MFI. On the other hand, the creation of a merit list will increase the competition among the institutions, which will motivate all of them to perform better. Ultimately, the borrowers will get the benefit of this.
• Mudra Bank will also provide proper guidelines regarding business to the borrowers, which will help in getting the business out of the crisis. Along with this, Mudra Bank will also cooperate in determining the procedure to be followed for recovery of money in case of default.
• Mudra Bank will formulate a credit guarantee scheme to guarantee loans to small business units.
• Mudra Bank will provide effective technology to the lending institutions to help in the process of taking and disbursing loans.
• Under the scheme, Mudra Bank will create a suitable framework so that an effective system can be developed for providing small loans to business units.

Pradhan Mantri Mudra Yojana

Meaning of Mudra Yojana (Prdhan Mantri MUDRA Bank Yojana) Micro Units Development Refinance Agency (Micro Units Development Refinance Agency) Which was called MUDRA, in short meaning money means money, this is the main point of this scheme, help of money to cottage industries.

Establishment of Prime Minister’s Scheme (Pradhan Mantri MUDRA Yojana) :

Mudra Yojana has been announced on April 2015. The Mudra Bank has been established under the Statutory Act, in which the responsibility of the development of cottage industries will be of the Prime Minister’s Mudra Yojana Bank.

target of mudra loan scheme

Small cottage industries do not get financial help from the bank easily, they are not able to fulfill the rules of the bank, due to this they are unable to increase the industries, hence the Mudra Bank scheme is being started, whose main goal is to improve the skills of young educated youth. To give a strong ground as well as to empower women.

Eligibility of Pradhan Mantri Mudra Bank Yojana (Pradhan Mantri MUDRA Bank Yojana Eligibility):

Under the Mudra scheme, every person who has a cottage industry in his name or has the right documents of partnership with anyone or is a small small unit, they can take a loan under this Mudra bank scheme.

How to get loan under Mudra Yojana?

If any Indian citizen wants to avail benefits under Mudra Loan Scheme, then he has to follow the following procedures.

• First of all, the person wishing to get the loan will have to go to a nearby bank and contact the bank for Pradhan Mantri Mudra Yojana and get the form of the scheme from them.
• Then by filling the loan application form, you will have to submit the documents asked for and the detailed description of the business you do or any new business you want to start.
• After this, all the formalities prescribed by the bank will have to be completed.
• After completing all the formalities your loan will be sanctioned and made available to you.

Documents required to get Prime Minister Mudra Loan

Applicants desirous of getting loans under Pradhan Mantri Mudra Yojana will have to submit the following documents along with their application –

• Self-attested copy of any one of the PAN Card, Aadhar Card, Driving License, Voter ID Card, Passport for identification.
• Self-attested copy of Voter ID Card, Aadhar Card, Passport or Telephone or Electricity Bill for proof of residence.
• Self-attested copy of the certificate if the applicant belongs to SC/ST or Backward Classes.
• Copies of documents relating to the business entity such as license, registration certificate, identity of the proprietor, etc.
• It is also necessary for the applicant that he should not be a defaulter of any bank or financial institution.
• If the applicant applies for a loan of 2 lakh and above, then he has to submit the copy of his Income Tax Return and Balance Sheet for the last 2 years. It is not mandatory for Shishu class loan.
• If the applicant wants to start a new business on a large scale or want to expand his existing business, then he has to submit the project report related to the business. The technical and economic aspects of the business can be examined from this report.
• The applicant will also have to furnish the details of sales and profit and loss made by his unit during the current financial year.
• If the applicant is a company or partnership firm, then a copy of the relevant deed or memorandum will have to be submitted.
• The applicant has to attach his 2 photographs with the application. (If the applicant is a company or partnership firm, then 2-2 photographs of all its directors or partners have to be attached.)

Loan / loan provision under Mudra Yojana

Under the Mudra loan scheme, borrowers are classified into three categories. The basis of this classification is the various stages of the business – in the first stage, those who start the business, in the second stage, in the medium position are those who seek finance in the form of loans to provide financial strength to the business and in the third stage are those who start the business. Looking for more capital to raise. To meet the needs of these three classes, Mudra Bank has divided loans into the following three categories –

• shishu loan Under this, loans up to Rs 50,000 have been kept.
• kishore loan Under this, loans ranging from 50 thousand to 5 lakh rupees have been kept.
• Tarun Loan Under this, loans from 5 lakh to 10 lakh rupees have been fixed.

Almost all types of business units, professionals and service sectors are covered to avail benefits under Mudra Loan Scheme. These include small shopkeepers, fruit and vegetable vendors, street vendors, hair cutting salons, beauty parlors, hawkers, cycle-bike-car repairers, transporters, truck operators, machine operators, artisans, craftsmen, painters, food processing units, restaurants. , cooperatives, self-help groups, small and cottage industries etc.

Future products and plans to be offered by Mudra Loan

• currency card
• investment credit guarantee
• increase in credit limit
• Linking of Beneficiaries with Aadhar Database and Jan Dhan Account
• setting up of credit bureaus
• Development of institutions like mix market

Benefits of Mudra Yojana

• Due to this scheme, the encouragement of small traders will increase, which will lead to economic development of the country.
• Due to this scheme, nine educated youth will get employment and their skills will also come to the fore.
• Big industries employ only 1.25 crore people but cottage industries provide employment to 12 crore people.
• By promoting such industries, the country’s money will remain in the country and there will be economic development.
• There will be communication of new activities.
• The confidence of small traders will increase, which will create a sense of competition which will be helpful in their progress.
• The development of the country is not done by the development of the rich but by the development of the poor, so the Mudra Bank scheme is an important decision in this direction.

The idea of ​​Mudra Bank scheme is that of Professor Yunus of Bangladesh country, which he implemented in the year 2006, which led to the development of cottage industry, after which Yunus Sahab was praised at the international level.

Now in the year 2015, the Mudra Bank scheme has been implemented in the country, after the huge tragedy, many schemes have been implemented to stabilize the country, which are important:

Mudra Loan Information by SBI (SBI Bank Gives Mudra Loans Details)

State Bank of India (SBI) is the largest bank in India. This bank is now giving Mudra loan. Just now SBI has given Shishu loan to women running about 80 small scale industries in West Bengal. You can also go to your nearest SBI and get information about this scheme. Taking a loan from SBI is considered the most difficult because they give loan only after doing complete investigation. So do not forget to take all your documents with you before going to SBI.

Ultimately, it can be said that the Mudra Bank Scheme is an equal opportunity for the youth, backward classes, scheduled castes, scheduled tribes of the country, through which they can not only prove their worth but also improve their lives as well as the country. Can also make an active contribution to the economic development of It is also being said in relation to this plan that if this plan is successful and penetrates its goal, then it will be established as a success story in front of the world.

So far, about 10 lakh people have got loans under this scheme.

According to the latest report, this scheme has helped a maximum of 3.49 crore new traders. Under this scheme since its inception till date, 12.27 crore credits have been sanctioned. A report also revealed that as of July 2018, the program has offered credit to a maximum of 61.12 crore recipients.

MUDRA Loan Yojana FAQ