Advantages of Mudra Loan
MUDRA banks, which is also known as the Micro Units Development and Refinance Banks is among those banks and schemes which are recently launched by the PM of our nation. The main objective of this scheme is to uplift small business and entrepreneurs. It is a totally a new scheme that was launched in 8th April on 2015. There are several exceptions made, which will totally satisfy the customer needs and they will basically reach certain areas where the ordinary banks cannot reach. There are so many remote places in our nation where the poor people cannot reach the regular and ordinary banks. The main target of the mudra bank is to reach those people and serve them, who are in great needs of a banking service. This bank will provide each and every banking service like saving accounts, loan, credit cards and some other special benefits.
The idea came in the annual budget of India and it took its shape in the month of April. But, only making an idea is not enough as it will also need customers have trust on them and fulfill their needs. So, the committee decided to hit 5 crore users and help those, who are getting deprived of their basic banking needs. Several agents are also hired under this project, who will reach the doors of those needy people.
Benefits of mudra bank
As it is stated earlier that the main motto of the mudra bank is to give support and empower the needy people and small business. This will surely make a difference and hence the Indian economy will also start rising. It is not only that the large business and dealers are the main source of the Indian economy. Even the smallest of them can affect the whole Indian economy.
Banking services are not available in the remote areas. Hence the people those who are in need of money, usually take loans from money lenders at a very high interest. The money lenders also exploit them as those poor people cannot do anything. This surely affects the upliftment of the small business sectors.
- The utmost important objective is to create a system so that the micro business can get the maximum benefits with minimum risks.
- Also sets up a good process of the last-mile credit agent scheme, which is entirely for the small business setups.
- It also makes a credit guarantee to the one who has taken the loan. It means that the person will not only go into debts. The government will also have to bear the responsibility of the loan.
- There are certain agents hired under the committee who will guide on how to organize and process a business so that there are minimum risks of getting a negative result.
- All the small business units and sectors will be placed under the surveillance, and a regular evaluation will be made based on their performance.
There are three schemes and based on these schemes, the loan will be provided. Further the loan is sub-divided under three segments i.e. the starters, mid-stage finance and the level growth seekers. Following are the three loans that are provided by the mudra bank.
- Shishu- This is a starter scheme and the lending amount will be Rs. 50,000.
- Kishor- This scheme is meant for the mid-level business organizations. The amount will vary in between Rs. 50,000 to 5 lakh.
- Tarun- This is the next level scheme and it will help those business organizations who are thinking of having a better business setup. The loan provided will range from Rs. 5 lakh to Rs. 10 lakh.
All of these schemes are truly meant for the small business setups and they will surely bring a change in the entire Indian economy.