MUDRA LOANS –

How to raise capital for business by “MUDRA” Loans. “Fund the unfunded” PMMY scheme is for non-farm micro & small enterprises in Manf, trading & Services.

In this video tutorial, we discuss how Business entrepreneurs in the MSME segment wondering how to raise money for business and struggling to raise capital for business should seriously consider MUDRA loans promoted under Pradhan Mantri Mudra Yojana popularly known as PMYY scheme.

Launched by the Honorable Prime Minister of India Shri Narendra Modi, MUDRA stands for Micro Units Development and Refinance Agency. Under this scheme, Banks and other public sector financial institutions in India provide Loans at low rates to small scale Business Entrepreneurs. MUDRA loans under the Pradhan Mantri Mudra Yojana or PMMY is a flagship scheme of the Government of India to extend affordable credit to micro and small enterprises.

Mudra loans under the Pradhan Mantri Mudra Yojana are designed to bring MSME enterprises into the formal financial system or to “fund the unfunded”. Loans under MUDRA PMMY scheme are available to non-farm micro or small enterprises engaged in income generation through manufacturing, trading and services. Mudra loan is extended for a variety of purposes which provides income generation and employment creation in Manufacturing, Services, Retail and Agri. Allied Activities.

MUDRA provides loans up to 10 lakh to the non-corporate, non-farm small/micro enterprises. These loans are classified as MUDRA loans under PMMY. These loans are given by Commercial Banks, RRBs, Small Finance Banks, MFIs and NBFCs. The borrower can approach any of the above lending institutions.

MSME Enterprises involved in allied agricultural activities are also eligible for Mudra loans. There are 3 types of Mudra loans namely Shishu, Kishore and Tarun under this scheme. Under the aegis of PMMY, MUDRA has created three products namely ‘Shishu’, ‘Kishore’ and ‘Tarun’ to signify the stage of growth / development and funding needs of the beneficiary micro unit / entrepreneur and also provide a reference point for the next phase of graduation / growth. Under Shishu Scheme: Up to Rs. 50,000 and Under Kishor Scheme: Rs. 50,001 – Rs. 5,00,000 and under Tarun Scheme: Rs. 5,00,001 – Rs. 10,00,000