Mudra Loan is not for rich People
Mudra yojana is clearly not meant for the rich or the business class people. M Venkaiah Naidu, the parliamentary affairs minister said, when we are thinking of the rich so that we can create wealth and invite investments, at the same time we must think about the poor and those who are staying below the poverty line. The vulnerable sections should also be treated and they should also be given the opportunity to grow up.
He further added that the Mudra yojana’s main targets are the poor people. Hence, the rich should not get benefits from it. Whenever a bank lends a loan to a rich person, the bank is more assured of getting it back with the interest because one day or the other, the rich people are going to pay it back.
But, while lending loan to the poor, the bank is a bit vulnerable as the profit margin of the poor will decide if they can return the loan with the interest. These are the risks the bank has to think about while lending a loan to the poor people. But, on the other hand, the poor people are more sincere than paying back when compared with the rich ones.
When someone is applying for a mudra loan of Rs. 1000, in other words, he is actually getting a loan of Rs. 900. Now, as the terms and conditions are made, the loan is being sanctioned and dispatched to his account. After the completion of his tenure, he has to pay Rs. 1000 in return. That means the extra Rs. 100 is the interest which the bank will charge as because it has sanctioned a loan and it will also take the extra amount because it will make the profit out of it.
While lending loan to the poor sector, the interest rates are applied, but the charges are very less when compared to the normal bank. This is the main reason why it is totally meant for the poor sector and hence the rich people cannot apply for it. In case someone is unable to pay back the loan, the government has also launched subsidy for those and it will help in the partial fulfillment of the loan.
There are three schemes under the Mudra yojana–
- Shishu scheme
- Kishor scheme
- Tarun scheme
These three schemes are created so that the needs of the poor ones can be omitted.