What Are the Prod­ucts?

Consumer Voice - - Mudra -

Loans un­der the scheme have been grouped in three cat­e­gories: a) Shishu (if you have just started a small busi­ness) – up to Rs 50,000 Kishor (if you have al­ready set up your busi­ness and want to run it) – be­tween Rs 50,001 and Rs 5 lakhs c) Tarun (if you have an es­tab­lished busi­ness and want to ex­pand fur­ther) – Rs 5 lakhs–Rs 10 lakhs Since MFIs are the lead­ing play­ers in th­ese loan seg­ments, the govern­ment has so far re­fi­nanced loans mainly of mi­cro­fi­nance in­sti­tu­tions. b)

Who Is El­i­gi­ble?

Any In­dian ci­ti­zen who has a busi­ness plan for a non-farm in­come-gen­er­at­ing ac­tiv­ity and whose credit need is less than Rs 10 lakhs can ap­proach a bank, an MFI, or an NBFC for avail­ing of MUDRA loans. So, ben­e­fi­cia­ries can be pro­pri­etor­ship/ part­ner­ship firms run­ning as small man­u­fac­tur­ing units, shop­keep­ers, fruits/veg­etable sellers, hair- cut­ting sa­lons, beauty par­lours, trans­porters, truck op­er­a­tors, hawk­ers, co-op­er­a­tives or body of in­di­vid­u­als, food-ser­vice units, re­pair shops, ma­chine op­er­a­tors, ar­ti­sans, food pro­ces­sors, self-help groups, ser­vice providers, and so on. Sanc­tion of as­sis­tance is as per the el­i­gi­bil­ity norms of the re­spec­tive lend­ing in­sti­tu­tion, based on the broad guide­lines of RBI. The loan amount is de­cided by the re­quire­ment of the pro­posed in­come-gen­er­at­ing ac­tiv­ity and the re­pay­ment terms are de­cided by the an­tic­i­pated cash flow from the ac­tiv­ity.

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