What Are the Products?
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.