Karnataka tops in disbursal of loans under Mudra scheme

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Karnataka is top in disbursal of loans under the Pradhan Mantri Mudra Yojana, popularly known as the Mudra scheme

  • As of September 18, the State disbursed ₹6,906.12 crore during the current fiscal year.
  • Rajasthan was second with ₹6,405.69 crore disbursed, while Uttar Pradesh was third after releasing ₹6,068.23 crore. Maharashtra was fourth with ₹5,153.62 crore released to eligible beneficiaries.
  • Various nationalised banks in the State have disbursed loans to 9,75,873 beneficiaries. The bankers have been told to take appropriate steps to boost the flow of credit under the Mudra scheme.
  • A total of 6,92,502 beneficiaries received loans upto ₹50,000 under “Shishu” scheme and 2,58,433 beneficiaries received loans from ₹50,000 to ₹5 lakh under “Kishore” scheme.
  • A total of 24,938 beneficiaries received loans from ₹5 lakh to ₹10 lakh under “Tarun” scheme.

 

Micro Units Development and Refinance Agency Bank

  • Micro Units Development and Refinance Agency Bank (or MUDRA Bank) is a public sector financial institution in India
  • It provides loans at low rates to micro-finance institutions and non-banking financial institutions which then provide credit to MSMEs. 
  • It was launched by Prime Minister Narendra Modi on 8 April 2015.
  • The formation of the agency was initially announced in the 2015 Union budget of India in February 2015. 
  • The MUDRA banks were set up under the Pradhan Mantri MUDRA Yojana scheme
  • It will provide its services to small entrepreneurs outside the service area of regular banks, by using last mile agents.
  • About 5.77 crore (57.6 million) small business have been identified as target clients using the NSSO survey of 2013. Only 4% of these businesses get finance from regular banks. 
  • The bank will also ensure that its clients do not fall into indebtedness and will lend responsibly.
  • The bank will have an initial capital of ₹200 billion (US$2.8 billion) and a credit guarantee fund of ₹30 billion (US$420 million). 
  • The bank will initially function as a non-banking financial company and a subsidiary of the Small Industries Development Bank of India (SIDBI). 
  • Later, it will be made into a separate company. However, it will regulate Microfinance institutions.
  • The bank will classify its clients into three categories and the maximum allowed loan sums will be based on the category:
  1. Shishu: Allowed loans up to ₹50,000 (US$700)
  2. Kishor: Allowed loans up to ₹5 lakh (US$7,000)
  3. Tarun: Allowed loans up to ₹10 lakh (US$14,000)

 

Those eligible to borrow from MUDRA bank are:

  1. Small manufacturing unit
  2. Shopkeepers
  3. Fruit and vegetable vendors
  4. Artisans
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